with effect from aug 9, 2021, manulife has become the

With effect from Aug 9, 2021, Manulife has become the sponsor of Allianz Global Investors

MPF Plan, which has been renamed as Manulife RetireChoice (MPF) Scheme. Please

visit www.manulife.com.hk for more information.

Please note the Annual Report is as of Jun 30, 2021 so it is still under the old scheme name.

由 2021 年 8 月 9 日起，宏利已成為安聯強積金計劃的保薦人，計劃名稱亦已更改為宏利

退休精選﹙強積金﹚計劃。成員可瀏覽 www.manulife.com.hk 了解更多。

請留意，此年度報告乃截至 2021 年 6 月 30 日，因此仍沿用舊計劃名稱。

http://www.manulife.com.hk/

http://www.manulife.com.hk/

Allianz Global Investors MPF Plan

Annual Report

Year ended 30 June 2021

ALLIANZ GLOBAL INVESTORS MPF PLAN ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

ALLIANZ GLOBAL INVESTORS MPF PLAN FOR THE YEAR ENDED 30 JUNE 2021

ANNUAL REPORT Contents Pages Scheme Report 1 - 5 Report of the Investment Manager 6 - 14 Investment Report 15 - 95 Independent Auditor’s Report 96 - 99 Scheme

Statement of Net Assets Available for Benefits 100 Statement of Changes in Net Assets Available for Benefits 101 - 102 Statement of Cash Flows 103

Constituent Funds

Statement of Net Assets 104 - 108 Statement of Comprehensive Income 109 - 113 Statement of Changes in Net Assets Attributable to Members 114 - 118

Statement of Cash Flows 119 - 128

Notes to the Financial Statements 129 - 203


1

SCHEME REPORT The Trustee hereby submits the scheme report together with the audited financial statements of the Allianz Global Investors MPF Plan (the “Scheme”) for the year ended 30 June 2021. The Scheme The Scheme is a master trust scheme for the purpose of providing benefits to members in accordance with the Hong Kong Mandatory Provident Fund Schemes Ordinance (the “Ordinance”). The Scheme was established under a trust deed dated 14 July 2000, as amended from time to time, and replaced by a consolidated trust deed dated 20 March 2008, as amended from time to time, between Allianz Global Investors Hong Kong Limited as Sponsor and HSBC Institutional Trust Services (Asia) Limited as the Trustee (up to 31 December 2009). The Scheme is registered under section 21 of the Ordinance. With effect from 20 October 2008, the name of the Scheme was changed from Allianz Global Investors MPF Plan to RCM MPF Plan, and RCM Asia Pacific Limited replaced Allianz Global Investors Hong Kong Limited as both the Sponsor and Investment Manager of the Scheme. The appointment of RCM Asia Pacific Limited as the Investment Sub-Manager of the Scheme was terminated on 20 October 2008. With effect from 30 September 2009, the name of RCM Capital Preservation Fund was changed to RCM MPF Conservative Fund. With effect from 1 January 2010, the trusteeship was changed from HSBC Institutional Trust Services (Asia) Limited to Bank Consortium Trust Company Limited. With effect from 1 November 2012, the name of the Scheme was changed from RCM MPF Plan to Allianz Global Investors MPF Plan. With effect from 1 June 2015, the name of RCM Asia Pacific Limited was changed to Allianz Global Investors Asia Pacific Limited as a result of an amalgamation with its group company. With effect from 1 June 2015, there was a change in relation to the Allianz RMB Money Market Fund, the words “(this Constituent Fund is denominated in HK dollar only and not in RMB)” in brackets wherever appearing after “Allianz RMB Money Market Fund” were deleted.

With effect from 1 June 2015, the Chinese name of the Scheme was changed from 德盛安聯強積金計劃 to安聯強積金計劃. The Chinese names of the constituent funds were also changed as follows:

Previous Chinese name of constituent fund Current Chinese name of constituent fund

德盛安聯強積金保守基金安聯強積金保守基金

德盛安聯人民幣貨幣市場基金安聯人民幣貨幣市場基金

德盛安聯目標回報基金安聯目標回報基金

德盛安聯亞洲基金安聯亞洲基金

德盛安聯均衡基金安聯均衡基金

德盛安聯穩定資本基金安聯穩定資本基金

德盛安聯大中華基金安聯大中華基金

德盛安聯增長基金安聯增長基金

德盛安聯香港基金安聯香港基金

德盛安聯東方太平洋基金安聯東方太平洋基金

德盛安聯穩定增長基金安聯穩定增長基金


2

SCHEME REPORT (continued) The Scheme (continued) With effect from 30 November 2018, the name of Allianz Absolute Return Fund (安聯目標回報

基金) was changed to Allianz Flexi Balanced Fund (安聯靈活均衡基金).

With effect from 9 August 2021, Manulife (International) Limited replaced Allianz Global Investors Asia Pacific Limited as the Sponsor of the Scheme. As a result of the change in sponsorship, the name of the Scheme was changed from “Allianz Global Investors MPF Plan” to “Manulife RetireChoice (MPF) Scheme”, while the names of the constituent funds remained unchanged. As at 30 June 2021, the Scheme had the following constituent funds:

Allianz Balanced Fund

Allianz Capital Stable Fund

Allianz Growth Fund

Allianz Stable Growth Fund

Allianz MPF Conservative Fund

Allianz Hong Kong Fund

Allianz Asian Fund

Allianz Flexi Balanced Fund

Allianz Greater China Fund

Allianz Oriental Pacific Fund

Allianz RMB Money Market Fund

Allianz MPF Age 65 Plus Fund

Allianz MPF Core Accumulation Fund Financial developments

The total contributions received and receivable including transfers in and benefits paid and payable including transfers out, forfeitures and long service payment during the year were HK$832,420,475 (2020: HK$884,717,714) and HK$1,392,129,208 (2020: HK$1,188,276,563), respectively. The net asset value as at 30 June 2021 was HK$10,937,656,377 (2020: HK$9,135,572,752). The Scheme had 82,207 (2020: 84,683) members as at 30 June 2021.


3

SCHEME REPORT (continued) Changes to the governing rules During the financial year, MPF Scheme Brochure and, where appropriate, the Trust Deed of the Scheme have been amended to reflect the following changes: With effect from 15 January 2021 (i) The investment policies of each of the Allianz Balanced Fund, Allianz Capital Stable

Fund, Allianz Growth Fund and Allianz Stable Growth Fund (collectively, the “Relevant Constituent Funds”) were amended to reflect the amendments to the investment policy of the corresponding underlying approved pooled investment fund in which each of the Relevant Constituent Funds invests all its assets and the existing flexibility of the portfolio manager of Allianz Global Investors Choice Fund in selecting the appropriate underlying funds.

(ii) There were miscellaneous updates and changes as follows:

(a) change of the Legal Advisors of the Scheme; (b) enhancement of disclosures in relation to the MPFA approved underlying index-

tracking collective investment schemes’ use of security lending transactions and/or repurchase agreements;

(c) enhancement of disclosures in relation to the MPFA approved underlying index-

tracking collective investment schemes’ use of financial derivatives for hedging or non-hedging purpose; and

(d) other miscellaneous administrative and/or editorial amendments.

After the end of financial year, the MPF Scheme Brochure of the Scheme has also been amended to reflect the following changes: With effect from 9 August 2021: (i) Manulife (International) Limited will replace Allianz Global Investors Asia Pacific Limited

as the Sponsor of the Scheme.

(ii) As a result of the change in sponsorship, the name of the Scheme will be changed from

“Allianz Global Investors MPF Plan” to “Manulife RetireChoice (MPF) Scheme”, while

the names of the constituent funds will remain unchanged.

With effect from 17 December 2021:

(i) To simplify the fee arrangement, the investment management fee of each of the Allianz

Flexi Balanced Fund, Allianz Asian Fund, Allianz Balanced Fund, Allianz Capital Stable

Fund, Allianz Greater China Fund, Allianz Growth Fund, Allianz Hong Kong Fund,

Allianz Oriental Pacific Fund and Allianz Stable Growth Fund (collectively, the “Relevant

Constituent Funds”) will be re-designated to the Relevant Constituent Fund’s level.

Notwithstanding the re-designation, there will be no change to the total rate of the

investment management fee payable from the Relevant Constituent Funds.


4

SCHEME REPORT (continued) Changes to the governing rules (continued)

With effect from 30 June 2022:

(i) The investment policies of each of the Allianz Hong Kong Fund, Allianz Greater China

Fund, Allianz Oriental Pacific Fund, Allianz Asian Fund, Allianz Growth Fund, Allianz

Balanced Fund, Allianz Stable Growth Fund and Allianz Capital Stable Fund

(collectively, the “Relevant Constituent Funds”) will be amended to reflect the

amendments to the investment policy of the corresponding underlying approved pooled

investment fund (in which each of the Relevant Constituent Funds invests all its assets)

in relation to increase in the underlying approved pooled investment funds’ exposure to

China A-Shares.

For the details, please refer to the relevant parts of the MPF Scheme Brochure.

Particulars of the service providers Particulars of the Trustee and service providers engaged by the Trustee for the purposes of the Scheme during the year ended 30 June 2021 are set out below. Trustee, Custodian and Administrator Bank Consortium Trust Company Limited 18th Floor, Cosco Tower 183 Queen’s Road Central Hong Kong

Sponsor and Investment Manager Allianz Global Investors Asia Pacific Limited 27th Floor, ICBC Tower 3 Garden Road Central Hong Kong Legal Advisor Deacons 5th Floor, Alexandra House 18 Chater Road Central Hong Kong Auditor PricewaterhouseCoopers 22nd Floor, Prince’s Building Central Hong Kong


SCHEME REPORT (continued)

Particulars of the service providers (continued)

Bank

Citibank N.A. Hong Kong 50th Floor, Champion Tower 3 Garden Road Central Hong Kong

Directors of the Trustee

Tan Stephen Ko Sog Yee, Karen Lau Wai Man Wong Hon Hing Wang, Pak Ling Gary

Kwok Sek-chi, David Li Yiu Ki Wang Frank John Au-Yeung Lai Ling Ivy Woo Lap Hoi Hui Cheong Ming

Lau Ka Shi, Betsy Leckie Stuart Hamilton, OBE, JP Tam Po Chiu

(Alternate Director to Tan Stephen)

(Appointed as Alternate Director to Wong Hon Hing on 3 November 2020)

(Alternate Director to Kwok Sek-chi, David) (Resigned on 11 September 2020) (Appointed as Director on 11 September 2020)

(Appointed as Alternate Director to Woo Lap Hoi on 10 December 2020)

(Independent Director) (Independent Director)

Please note the contact address of the directors of Bank Consortium Trust Company Limited is the registered/business address of Bank Consortium Trust Company Limited.

Further information

Members can obtain further information about the Scheme and its operations from the Trustee, at the address shown on page 4.

For and on behalf of Bank Consortium Trust Company Limited

Director Director Hong Kong, 14 December 2021

5


6

REPORT OF THE INVESTMENT MANAGER

2021 Global Market Review – Consolidated Manager Report Allianz Balanced Fund Allianz Capital Stable Fund Allianz Growth Fund Allianz Stable Growth Fund Allianz MPF Core Accumulation Fund

Allianz MPF Age 65 Plus Fund Market Review

For the 1 year period ended 30 June 2021, global equities surged and significantly outperformed global

bonds. Over the second half of 2020, stocks initially climbed strongly amid hopes that the global economy

may be over the worst of its pandemic-induced slowdown, but these hopes were dashed as the summer

faded in the northern hemisphere and new infections increased rapidly. However, November was one of

the strongest months on record, as positive vaccine news added to optimism over Joe Biden’s victory in

the US presidential election. Many stock markets closed the year 2020 at or near record highs. During

the first half of 2021, global equities advanced as the roll-out of COVID-19 vaccines boosted the outlook

for a global economic recovery from the pandemic. US president’s Joe Biden’s plans for massive fiscal

stimulus further bolstered sentiment although concerns grew about rising inflationary pressures.

European equities were among the strongest performers as the reflation trade led to a rotation into cyclical

companies out of technology stocks.

For bond markets, second half of 2020 was a mixed six months. US bond yields rose amid fears that

enhanced fiscal stimulus would feed into higher inflation. In contrast, European bond yields trended lower

as the European Central Bank extended its monetary support. Over the first half of 2021, global bonds

sold off as yields rose amid rising inflation expectations. US bond yields rose sharply, with the 10 year

yield rising to almost 1.8% in March, before closing June just below 1.5%. Yields on Euro-zone bonds

also trended higher during the period. Corporate bonds outperformed sovereign debt in a sign that the

recent rise in inflation was not expected to derail the economic recovery.


7

REPORT OF THE INVESTMENT MANAGER (continued) 2021 Global Market Review – Consolidated Manager Report (continued)

Allianz Balanced Fund Allianz Capital Stable Fund Allianz Growth Fund Allianz Stable Growth Fund

Outlook

We are slightly positive on equity over the near term, as markets are supported with the presence of

massive central bank support (especially in US and Europe). Risk factors including pandemic uncertainty,

geopolitical risk and inflation risk will be watched closely. Within equities, we maintain a positive view on

Europe. We would expect the excess liquidity condition to continue being supported by the European

Central Bank’s (“ECB’s”), pandemic emergency purchase programme (“PEPP”) and asset purchase

programme (“APP”). In China, the current regulatory risk has hurt the overall investor sentiment.

However, we would expect that the credit normalization cycle would come to an end as the local economic

growth slows down, and the government may take a more neutral stance in terms of credit policy during

the second half of the year. USD weakness would be beneficial to Asian equity markets, but overall

renewed US-China tension is a key concern. On the fixed income side, prolonged low interest rate

environment should keep global government bond yield in tight trading range. Stimulus package and

corporate bond purchase programs should favor the credit market. Allianz MPF Core Accumulation Fund Allianz MPF Age 65 Plus Fund Outlook In the US, the unprecedented fiscal and monetary stimulus is lifting the sentiment of market participants and may drive prices of financial assets above their fair valuations for longer. However, we are mindful about a potential earlier-than-expected interest rate hike due to strong economic recovery and better-than-expected employment condition. In addition, investors will be closely monitoring the current wave of Delta variant and vaccination rate in near future. In Europe, we would expect the excess liquidity condition to continue being supported by the ECB’s PEPP and APP. In Asia, geopolitical tension and China’s regulatory risk remain the key concern going forward, although USD weakness should be beneficial to the Asian markets in general. On the fixed income side, prolonged low interest rate environment should keep global government bond yield in tight trading range, especially after the Fed changed their monetary policy to “average inflation targeting”, with more focus on employment compared to inflation. Stimulus package and corporate bond purchase programs should favor the credit market.


8

REPORT OF THE INVESTMENT MANAGER (continued) 2021 Global Market Review – Consolidated Manager Report (continued) Allianz MPF Conservative Fund

Market Review

For the 1 year period ended 30 June 2021, HKD liquidity had become increasingly abundant with HKMA

injection and USD/HKD in general stayed at the lower end of the peg. The aggregate balance increased

to a record high of HKD 457 billion in December 2020. While there were a few hot IPOs towards the end

of 2020, short term Hong Kong interest rates decreased due to abundant liquidity in the system. Hong

Kong’s economy has started to recover in the first half of 2021 with better than expected unemployment

rate and Q1 GDP data. In the 2021/2022 fiscal budget, the government forecasted deficit spending to

reach 3.6% of GDP. The budget included an additional fiscal package. Key measures include funding

support for pandemic response and vaccine procurement, support for enterprises and for individuals and

households.

Outlook

In Hong Kong, GDP growth and unemployment rate data continued to show improvement, signaling

economic recovery is in place. With low COVID-19 infections, the Hong Kong government has relaxed

local social restrictions with discussions also in place on border easing. In addition, permanent residents

has started to register for the HK$5,000 consumption voucher which shall be ready to spend in August,

and shall further support the recovery in local consumption. With abundant liquidity in Hong Kong, we

expect the front end of the Hong Kong interest rate curve to stay low.


9

REPORT OF THE INVESTMENT MANAGER (continued) 2021 Global Market Review – Consolidated Manager Report (continued) Allianz Hong Kong Fund

Market Review

For the 1 year period ended 30 June 2021, Hong Kong equities saw strong positive performance in HKD

terms. Strong market performance during the second half of 2020 were driven by steady recovery post

COVID-19 outbreak in China. Effective pandemic control and encouraging vaccination process

underpinned the recovery of domestic economic activities in China, leading to good momentum in

corporate earnings recovery as well. Supportive macro policies also lifted market sentiment especially

towards the later part of the year.

The first half of 2021 was very eventful. The Hong Kong equity market saw sharp style rotation post the

Chinese New Year, with value stocks outperforming growth stocks. This was mainly driven by concerns

over potential policy tightening, which led to profit taking on previous growth biased outperformers. Rising

commodity prices also led to a return of value stocks. Market consolidated in the second quarter of 2021.

In terms of sector performance, basic materials, healthcare and industrials outperformed the broader

market over the 1 year period ended 30 June 2021. At the same time, consumer staples and

telecommunications underperformed.

Outlook

A key influence on market performance in the first half has been the tightening of policy in response to

the economic recovery in China. We view policy as finely balanced between supporting economic growth,

while also using the strength of the recovery to tackle structural issues. In July 2021, the market saw

further weakness with the clampdown on China’s education sector and fears of further regulatory

tightening across the internet space.

While the short-term nervousness in markets is understandable, the longer-term consequences of recent

regulatory events are likely to reinforce policy support in a number of other sectors. It is increasingly clear,

for example, China will focus on channeling resources to finance innovation in key strategic areas which

are viewed as critical to self-sufficiency in an increasingly polarized world. These include high tech

manufacturing areas such as semiconductors, renewable energy, biotech, robotics and blockchain.

Looking ahead, our base case is that the intensity and tone of the recent regulatory crackdown will be lessened. A key point is that China’s domestic capital markets must be developed further if long-term industrial policy goals are to be met. And if domestic stock markets are destabilized, then fund raising for all sectors is threatened. In this context, we see recent events as a speed bump which may delay, but not ultimately derail, China’s goal of liberalization of its financial markets.


10


Allianz Asian Fund

Market Review

For the 1 year period ended 30 June 2021, Asian equities delivered strong returns. The second half of

2020 in particular saw markets rallying strongly as sentiment was boosted by positive news regarding

COVID-19 vaccines and signs that the China economy was recovering. Optimism over the US election

result also buoyed sentiment as it raised hopes of improved US/China trade relations. Chinese stocks

rallied over this period, as it became the first major economy to report growth after being hit by COVID-

19. Returns were tempered towards the end of the period, however, as regulatory tightening impacted a

range of internet and ecommerce stocks. There was also some tightening of monetary and fiscal policy

in response to increasing supply chain bottlenecks and rising inflationary pressures.

Elsewhere in the region, the technology-heavy markets of Taiwan and Korea were the standout

performers as a global chip shortage meant semiconductor companies largely withstood the rotation out

of highly valued technology stocks. ASEAN markets advanced overall but generally lagged the rest of

the region.

Singapore was the strongest performance across ASEAN, amid growing optimism over the economic

outlook during the period. However, Malaysia, Thailand and Indonesia markets retreated sharply towards

the end of the period as the more infectious Delta variant of COVID-19, first identified in India, forced

many countries to implement lockdowns to try to control fresh outbreaks.

Outlook

As we enter the second half of 2021, the outlook for Asian equity markets remains dependent primarily

on the outlook for China. We believe that inflationary pressures in China will likely ease in coming months

and this will lead to a more market-friendly policy environment. Overall we view policy in China as finely

balanced between supporting economic growth, while also using the strength of the recovery to tackle

structural issues such as high levels of debt. Elsewhere in the region, while new COVID-19 outbreaks in

several countries have resulted in some risk of a delay to economic recovery, this in turn has also helped

ease concerns about policy tightening. Our base case is to remain constructive on the longer-term outlook

for the Asia region. In terms of sector positioning, the fund is overweight in communication services,

energy, and consumer staples, whilst being underweight consumer discretionary, utilities and industrials.

From a country perspective, we retain an overweight position to Thailand and Taiwan and have an

underweight position in India and Korea.


11

REPORT OF THE INVESTMENT MANAGER (continued) 2021 Global Market Review – Consolidated Manager Report (continued) Allianz Flexi Balanced Fund

Market Review

For the 1 year period ended 30 June 2021, global equities outperformed bonds. Global equities surged

over the second half of 2020, with many markets closing the year at or near record highs. Stocks initially

climbed strongly amid hopes that the global economy may be over the worst of its pandemic-induced

slowdown, but these hopes were dashed as the summer faded in the northern hemisphere and new

infections increased rapidly. However, November was one of the strongest months on record, as positive

vaccine news added to optimism over Joe Biden’s victory in the US presidential election. On the other

hand, it was a mixed six months for bond markets. US bond yields rose amid fears that enhanced fiscal

stimulus would feed into higher inflation. In contrast, European bond yields trended lower as the European

Central Bank extended its monetary support.

Global equities surged over the first half of 2021 as the roll-out of COVID-19 vaccines boosted the outlook

for a global economic recovery from the pandemic. US president’s Joe Biden’s plans for massive fiscal

stimulus further bolstered sentiment although concerns grew about rising inflationary pressures.

European equities were among the strongest performers as the reflation trade led to a rotation into cyclical

companies out of technology stocks. Global bonds sold off as yields rose amid rising inflation

expectations. Corporate bonds outperformed sovereign debt in a sign that the recent rise in inflation was

not expected to derail the economic recovery.

Outlook

Against the backdrop of steady vaccination progress, incremental easing of lockdown measures, a

release of pent-up demand and a still accommodative monetary and fiscal policy setting, we expect global

growth to continue in second half of the year but momentum is likely to moderate after a vigorous rebound

over the past year, and with increasing downside risks relating to the spreading of virus variants (Delta).

On the equities front, focus will be on corporates’ earnings in the coming months to assess companies’

specifics under current economic situation. Given lofty valuations and increasing risks of higher market

volatility and consolidations, the portfolio has been taking some profit on equities to protect year-to-date

gains. On the fixed income side, the fund has selectively added high grade quality corporate exposure in

the intermediate part of the curve which offers attractive carry and roll-down benefits.


12



Market Review

For the 1 year period ended 30 June 2021, Greater China equities delivered strong return in USD terms.

Strong market performance during the second half of 2020 were driven by steady recover post COVID-

19 outbreak in the Greater China region. Good economic momentum combined with supportive domestic

policies in China led to visible recovery of corporate earnings growth. In Taiwan equity climbed strongly,

with the semiconductor companies in particular benefitting from robust demand given the rollout of 5G

infrastructure and the ongoing adoption of artificial intelligence.

The first half of 2021 was very eventful. The Hong Kong and China equity market saw sharp style rotation

post the Chinese New Year, with value stocks outperforming growth stocks. This was mainly driven by

concerns over potential policy tightening, which led to profit taking on previous growth biased

outperformers. Meanwhile, Taiwan delivered more resilient performance, supported by continuous bullish

sentiment on the technology space.

In terms of sector performance, basic materials, healthcare and technology outperformed the broader

market over the 1 year period ended 30 June 2021. On the other hand, telecom and real estate areas

were the worst performer.

Outlook

A key influence on market performance in the first half has been the tightening of policy in response to

the economic recovery in China. We view policy as finely balanced between supporting economic growth,

while also using the strength of the recovery to tackle structural issues. In July 2021, the market saw

further weakness with the clampdown on China’s education sector and fears of further regulatory

tightening across the internet space.

While the short-term nervousness in markets is understandable, the longer-term consequences of recent

regulatory events are likely to reinforce policy support in a number of other sectors. It is increasingly clear,

for example, China will focus on channeling resources to finance innovation in key strategic areas which

are viewed as critical to self-sufficiency in an increasingly polarized world. These include high tech

manufacturing areas such as semiconductors, renewable energy, biotech, robotics and blockchain. In

this regard, we believe Taiwan technology companies, especially those with superior technology level,

are also well positioned to benefit from China’s focus on high tech manufacturing.


13

REPORT OF THE INVESTMENT MANAGER (continued) 2021 Global Market Review – Consolidated Manager Report (continued) Allianz Oriental Pacific Fund

Market Review

For the 1 year period ended 30 June 2021, Asia Pacific equities delivered strong returns. The second

half of 2020 in particular saw markets rally strongly as sentiment was boosted by positive news regarding

COVID-19 vaccines and signs that the China economy was recovering. Optimism over the US election

result also buoyed sentiment as it raised hopes of improved US/China trade relations. Chinese stocks

rallied over this period, as it became the first major economy to report growth after being hit by COVID-

19. Returns were tempered towards the end of the period, however, as regulatory tightening impacted a

range of internet and ecommerce stocks. There was also some tightening of monetary and fiscal policy

in response to increasing supply chain bottlenecks and rising inflationary pressures.

Elsewhere in the region, the technology-heavy markets of South Korea and Taiwan climbed strongly, with

semiconductor companies in particular benefitting from robust demand given the rollout of 5G

infrastructure and the ongoing adoption of artificial intelligence. Australian equities also surged, with the

market hitting a record high in June as miners were boosted by soaring prices for industrial metals. During

the period, Japan’s longest serving Prime Minister, Shinzo Abe, resigned due to ill health and was

replaced by Yoshihide Suga. The first quarter of 2021 saw Japan equities reach fresh highs, boosted by

the new US administration’s plans for fiscal stimulus as well as a weaker tone to the Japanese yen.

Outlook

As we enter the second half of 2021, the outlook for Asian equity markets remains dependent primarily

on the outlook for China. We believe that inflationary pressures in China will likely ease in coming months

and this will lead to a more market-friendly policy environment. Overall we view policy in China as finely

balanced between supporting economic growth, while also using the strength of the recovery to tackle

structural issues such as high levels of debt. In Japan, even though the State of Emergency has been

extended in some areas, the vaccination rollout is helping to restore consumer confidence. Elsewhere in

the region, while new COVID-19 outbreaks in several countries have resulted in some risk of a delay to

economic recovery, this in turn has also helped ease concerns about policy tightening. Our base case is

to remain constructive on the longer-term outlook for the region. In terms of country positioning, the fund

has an overweight exposure to stocks from Taiwan, Korea, and New Zealand, whereas the fund is

underweight in Japan, China, and India. At a sector level, the portfolio is overweight in information

technology and health care, while only holding selective positions in the financials, consumer

discretionary and communication services sectors.


14

REPORT OF THE INVESTMENT MANAGER (continued) 2021 Global Market Review – Consolidated Manager Report (continued) Allianz RMB Money Market Fund

Market Review

For the 1 year period ended 30 June 2021, the offshore Renminbi appreciated from 7.0699 to 6.4683 per

USD. Most of the appreciation happened in the second half of 2020, helped by broad weakness in the

USD on the back of extraordinary accommodative US monetary policy and fiscal stimulus, as well as

stronger risk sentiment in the China equity market. In addition, FTSE Russell announced to include China

government bonds into its World Government Bond Index starting from late 2021, this would likely drive

inflows into China government bond markets and the Renminbi currency.

Outlook China’s second quarter GDP growth was at 7.9% year-on-year, slightly weaker than expected, showing that while Chinese economy was not as weak as market feared, growth momentum has largely stayed on a decelerating trend. People’s Bank of China also cut the reserve requirement ratio in early July which could be seen as more pre-emptive in nature with the aim to improve interbank liquidity and save banks’ funding costs. Looking forward, we think China’s growth is likely to moderate over the second half of 2021, but thanks to an easier monetary policy and supportive fiscal stance, overall condition shall remain sanguine. On the currency front, with recent equity and credit market volatility, we believe that the authorities have a strong incentive to keep the Renminbi stable, as any depreciation expectation would lead to capital outflows.

ALLIANZ GLOBAL INVESTORS MPF PLAN AS AT 30 JUNE 2021

15

Investment report (a) Investment portfolio

Approved pooled investment funds established in Hong Kong Holding Market value

% of net assets

HK$ Allianz Balanced Fund

Allianz Global Investors Choice Fund

− Allianz Choice Balanced Fund Ordinary Class A 23,498,582.8113 1,081,874,753 100.04

Total investments, at cost 674,554,315



− Allianz Choice Capital Stable Fund Ordinary Class A 16,304,707.0908 529,902,980 100.00


Allianz Growth Fund


− Allianz Choice Growth Fund Ordinary Class A 48,851,821.5119 1,906,686,594 100.03

Total investments, at cost 1,116,713,874



− Allianz Choice Stable Growth Fund Ordinary Class A 30,881,600.5467 994,387,538 100.02


Note: Investments are accounted for on a trade date basis.


16

Investment report (continued) (a) Investment portfolio (continued)


% of net assets

HK$ Allianz MPF Conservative Fund


− Allianz Choice HK$ Liquidity Fund Ordinary Class 76,739,571.1725 1,007,628,939 99.97




− Allianz Choice Hong Kong Fund Ordinary Class A 30,164,058.8752 1,678,328,236 100.04

Total investments, at cost 1,142,628,189

Allianz Asian Fund


− Allianz Choice Asian Fund Ordinary Class A 28,023,146.4075 1,681,108,553 100.04




− Allianz Choice Flexi Balanced Fund Ordinary Class A 16,891,453.9727 370,429,586 99.99




17



% of net assets

HK$ Allianz Greater China Fund


− Allianz Choice Greater China Fund Ordinary Class A 21,707,282.9292 571,986,905 100.05




− Allianz Choice Oriental Fund Ordinary Class A 9,841,325.9423 314,627,190 100.03




− Allianz Choice HK$ Cash Fund Ordinary Class 2,674,688.7999 34,102,282 33.84

− Allianz Choice RMB Money Market Fund Ordinary Class (HKD) 5,718,141.6636 66,673,532 66.16

100,775,814 100.00




18


Approved pooled investment funds/ Index-tracking collective investment scheme established in Hong Kong Holding Market value

% of net assets

HK$ Allianz MPF Age 65 Plus Fund


− Allianz Choice Asian Fund Ordinary Class F 217,014.5139 4,579,006 2.71

− Allianz Choice “Best Styles” Europe Fund Ordinary Class F 456,214.7937 6,856,908 4.06

− Allianz Choice Global Fixed Income Fund Ordinary Class F 3,929,974.1608 45,469,801 26.94

− Allianz Choice HK$ Cash Fund Ordinary Class F 463,696.5895 4,919,821 2.92

− Allianz Choice Japan Fund Ordinary Class F 158,020.2175 2,145,915 1.27

− Allianz Choice “Best Styles” US Fund Ordinary Class F 944,650.2333 20,536,696 12.17

iShares World Government Bond Index Fund Class X 731,773.4100 84,207,435

49.90

168,715,582 99.97


Allianz MPF Core Accumulation Fund


− Allianz Choice Asian Fund Ordinary Class F 1,756,391.0691 37,059,852 7.16

− Allianz Choice “Best Styles” Europe Fund Ordinary Class F 3,895,372.7276 58,547,452 11.31

− Allianz Choice Global Fixed Income Fund Ordinary Class F 5,351,147.1359 61,912,772 11.96

− Allianz Choice HK$ Cash Fund Ordinary Class F 1,562,731.9412 16,580,586 3.21

− Allianz Choice Japan Fund Ordinary Class F 1,524,701.9079 20,705,452 4.00

− Allianz Choice “Best Styles” US Fund Ordinary Class F 9,067,614.0895 197,129,930 38.09

iShares World Government Bond Index Fund Class X 1,094,275.7500 125,921,703

24.33

517,857,747 100.06




19

Investment report (continued) (b) Statement of movement in portfolio holdings

Investments in Approved Pooled Investment Funds (units) 30 June 2020 Addition Disposal 30 June 2021 Allianz Balanced Fund Allianz Global Investors Choice Fund

− Allianz Choice Balanced Fund Ordinary Class A 25,550,113.4579 1,963,070.8592 (4,014,601.5058) 23,498,582.8113

Allianz Capital Stable Fund Allianz Global Investors Choice Fund

− Allianz Choice Capital Stable Fund Ordinary Class A 17,848,944.6709 2,544,975.5418 (4,089,213.1219) 16,304,707.0908

Allianz Growth Fund Allianz Global Investors Choice Fund

− Allianz Choice Growth Fund Ordinary Class A 53,498,115.1749 4,890,269.7432 (9,536,563.4062) 48,851,821.5119

Allianz Stable Growth Fund Allianz Global Investors Choice Fund

− Allianz Choice Stable Growth Fund Ordinary Class A 33,445,295.1249 3,696,632.2961 (6,260,326.8743) 30,881,600.5467

Allianz MPF Conservative Fund Allianz Global Investors Choice Fund

− Allianz Choice HK$ Liquidity Fund Ordinary Class 86,141,405.4258 37,917,907.1565 (47,319,741.4098) 76,739,571.1725

Allianz Hong Kong Fund Allianz Global Investors Choice Fund

− Allianz Choice Hong Kong Fund Ordinary Class A 33,692,722.2992 5,830,778.2521 (9,359,441.6761) 30,164,058.8752


20

Investment report (continued)

(b) Statement of movement in portfolio holdings (continued)

Investments in Approved Pooled Investment Funds (units) (continued) 30 June 2020 Addition Disposal 30 June 2021 Allianz Asian Fund Allianz Global Investors Choice Fund

− Allianz Choice Asian Fund Ordinary Class A 29,754,176.2073 4,521,934.1596 (6,252,963.9594) 28,023,146.4075

Allianz Flexi Balanced Fund Allianz Global Investors Choice Fund

− Allianz Choice Flexi Balanced Fund Ordinary Class A 18,675,559.3135 2,923,528.0284 (4,707,633.3692) 16,891,453.9727

Allianz Greater China Fund Allianz Global Investors Choice Fund

− Allianz Choice Greater China Fund Ordinary Class A 18,930,037.6755 9,982,975.6469 (7,205,730.3932) 21,707,282.9292

Allianz Oriental Pacific Fund Allianz Global Investors Choice Fund

− Allianz Choice Oriental Fund Ordinary Class A 8,116,869.3083 5,216,230.6435 (3,491,774.0095) 9,841,325.9423

Allianz RMB Money Market Fund Allianz Global Investors Choice Fund

− Allianz Choice HK$ Cash Fund Ordinary Class 1,932,620.7355 1,865,642.5400 (1,123,574.4756) 2,674,688.7999

− Allianz Choice RMB Money Market Fund Ordinary Class (HKD) 4,585,227.0954 4,020,586.0241 (2,887,671.4559) 5,718,141.6636


21


(b) Statement of movement in portfolio holdings (continued)

Investments in Approved Pooled Investment Funds/Index-Tracking Collective Investment Scheme (units) (continued) 30 June 2020 Addition Disposal 30 June 2021 Allianz MPF Age 65 Plus Fund Allianz Global Investors Choice Fund

− Allianz Choice Asian Fund Ordinary Class F 241,228.9080 188,998.8951 (213,213.2892) 217,014.5139

− Allianz Choice “Best Styles” Europe Fund Ordinary Class F 473,159.9171 388,068.6170 (405,013.7404) 456,214.7937

− Allianz Choice Global Fixed Income Fund Ordinary Class F 1,236,299.6403 8,489,589.3451 (5,795,914.8246) 3,929,974.1608

− Allianz Choice HK$ Cash Fund Ordinary Class F 357,877.9921 536,017.3939 (430,198.7965) 463,696.5895

− Allianz Choice Japan Fund Ordinary Class F 177,873.2305 258,402.4254 (278,255.4384) 158,020.2175

− Allianz Choice “Best Styles” US Fund Ordinary Class F 948,890.0295 860,984.0734 (865,223.8696) 944,650.2333

iShares World Government Bond Index Fund Class X 700,969.7500 30,803.6600 - 731,773.4100

Allianz MPF Core Accumulation Fund Allianz Global Investors Choice Fund

− Allianz Choice Asian Fund Ordinary Class F 2,163,129.0674 728,938.4447 (1,135,676.4430) 1,756,391.0691

− Allianz Choice “Best Styles” Europe Fund Ordinary Class F 4,160,485.3541 1,793,102.1416 (2,058,214.7681) 3,895,372.7276

− Allianz Choice Global Fixed Income Fund Ordinary Class F 2,278,455.4089 7,801,415.3339 (4,728,723.6069) 5,351,147.1359

− Allianz Choice HK$ Cash Fund Ordinary Class F 1,080,781.5281 1,406,928.9767 (924,978.5636) 1,562,731.9412

− Allianz Choice Japan Fund Ordinary Class F 1,862,461.8415 884,429.8134 (1,222,189.7470) 1,524,701.9079

− Allianz Choice “Best Styles” US Fund Ordinary Class F 8,625,750.8353 4,365,792.9393 (3,923,929.6851) 9,067,614.0895

iShares World Government Bond Index Fund Class X 970,248.7400 124,027.0100 - 1,094,275.7500


22

Investment report (continued) (c) Investment income and performance

2021

Allianz Balanced

Fund

Allianz Capital

Stable Fund Allianz

Growth Fund Allianz Stable Growth Fund

Allianz MPF Conservative

Fund Allianz Hong

Kong Fund Allianz

Asian Fund

Allianz Flexi Balanced

Fund

Allianz Greater

China Fund

Allianz Oriental

Pacific Fund

Allianz RMB Money

Market Fund

Allianz MPF Age 65 Plus

Fund

Allianz MPF Core

Accumulation Fund

HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ Net loss before investment gains/(losses) (7,071,175) (3,689,385) (12,175,167) (6,657,707) (2,716,945) (11,024,770) (10,707,340) (2,546,874) (3,394,644) (1,757,118) (641,354) (1,124,610) (3,231,411) Net gains/(losses) on investments - realised and unrealised 244,883,749 64,750,335 519,905,341 174,389,665 2,907,398 485,863,368 542,429,435 52,552,275 149,557,030 81,859,608 5,849,308 9,451,243 89,633,929

2020

Allianz Balanced

Fund

Allianz Capital

Stable Fund Allianz



Fund Allianz Hong

Kong Fund Allianz

Asian Fund


Fund

Allianz Greater

China Fund

Allianz Oriental

Pacific Fund

Allianz RMB Money

Market Fund


Fund

Allianz MPF Core

Accumulation Fund

HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ Net loss before investment gains/(losses) (6,264,841) (3,512,880) (10,406,393) (6,049,988) (7,431,615) (9,196,801) (7,697,346) (2,575,021) (2,216,491) (1,034,242) (533,406) (785,250) (2,338,408) Net gains/(losses) on investments - realised and unrealised 30,344,996 19,133,820 45,810,986 33,716,479 18,037,589 2,154,961 155,697,554 10,945,463 52,358,292 51,023,647 (543,267) 5,660,482 16,021,881

2019

Allianz Balanced

Fund

Allianz Capital

Stable Fund Allianz



Fund Allianz Hong

Kong Fund Allianz

Asian Fund


Fund

Allianz Greater

China Fund

Allianz Oriental

Pacific Fund

Allianz RMB Money

Market Fund


Fund

Allianz MPF Core

Accumulation Fund

HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ Net loss before investment gains/(losses) (6,528,825) (3,589,631) (11,035,960) (6,218,775) (8,134,728) (9,948,301) (7,954,750) (2,686,510) (2,145,941) (900,721) (582,647) (551,880) (1,879,429) Net gains/(losses) on investments - realised and unrealised (6,777,747) 10,459,648 (37,915,648) 7,204,361 17,955,050 (57,591,221) (43,593,796) 11,462,830 (24,856,984) (9,705,876) (447,549) 3,558,571 2,933,081


23

Investment report (continued) (d) Performance table Allianz Global Investors MPF Plan (“the Scheme”) started its operations on 1 December 2000. The performance records of the constituent funds of the Scheme are as follows: Investment and net asset value record as at 30 June 2021

Net asset value per unit Total net

asset value Total

Class A Class B Class T Investments HK$ HK$ HK$ HK$ HK$ Allianz Balanced Fund 43.8460 44.9196 45.5554 1,081,432,681 1,081,874,753 Allianz Capital Stable Fund 33.2190 34.2633 35.2476 529,894,500 529,902,980 Allianz Growth Fund 48.2336 49.6728 50.7129 1,906,026,487 1,906,686,594 Allianz Stable Growth Fund 38.8918 40.1996 41.4904 994,176,171 994,387,538 Allianz MPF Conservative Fund 16.8430 16.8483 17.1717 1,007,913,796 1,007,628,939 Allianz Hong Kong Fund 72.6394 79.4742 81.0068 1,677,696,389 1,678,328,236 Allianz Asian Fund 80.5428 87.8459 88.8882 1,680,374,456 1,681,108,553 Allianz Flexi Balanced Fund 27.0332 27.9583 28.4034 370,460,511 370,429,586 Allianz Greater China Fund 36.7765 44.5720 42.9368 571,718,392 571,986,905 Allianz Oriental Pacific Fund 41.7553 47.9235 47.9794 314,537,449 314,627,190 Allianz RMB Money Market Fund 15.5983 15.6076 15.6364 100,779,411 100,775,814 Allianz MPF Age 65 Plus Fund 11.9014 12.1348 12.1348 168,760,156 168,715,582 Allianz MPF Core Accumulation Fund 14.1914 14.5307 14.5307 517,541,411 517,857,747

Investment and net asset value record as at 30 June 2020


asset value Total

Class A Class B Class T Investments HK$ HK$ HK$ HK$ HK$ Allianz Balanced Fund 34.7375 35.5172 36.0091 923,441,237 923,892,103 Allianz Capital Stable Fund 29.7088 30.5804 31.4497 514,007,044 514,228,096 Allianz Growth Fund 36.0746 37.0775 37.8425 1,547,388,872 1,548,235,453 Allianz Stable Growth Fund 32.7270 33.7602 34.8338 897,872,341 898,340,627 Allianz MPF Conservative Fund 16.8403 16.8456 17.1686 1,127,688,716 1,128,116,460 Allianz Hong Kong Fund 53.6379 58.5676 59.6797 1,371,606,028 1,372,304,579 Allianz Asian Fund 55.9182 60.8666 61.5703 1,227,855,212 1,228,549,936 Allianz Flexi Balanced Fund 23.6295 24.3899 24.7713 354,781,427 354,835,627 Allianz Greater China Fund 26.3146 31.8295 30.6519 353,627,521 353,802,404 Allianz Oriental Pacific Fund 29.9243 34.2758 34.3063 184,259,877 184,334,102 Allianz RMB Money Market Fund 14.6471 14.6572 14.6785 72,677,539 72,708,494 Allianz MPF Age 65 Plus Fund 11.2433 11.4638 11.4638 125,157,666 125,091,857 Allianz MPF Core Accumulation Fund 11.6954 11.9740 11.9740 382,003,179 381,681,422


24


(d) Performance table (continued) Investment and net asset value record as at 30 June 2019


asset value Total

Class A Class B Class T Investments HK$ HK$ HK$ HK$ HK$ Allianz Balanced Fund 33.98 34.56 34.89 949,748,984 950,335,189 Allianz Capital Stable Fund 28.83 29.60 30.50 518,941,519 519,267,049 Allianz Growth Fund 35.30 36.18 36.88 1,596,670,889 1,597,707,445 Allianz Stable Growth Fund 31.74 32.69 33.73 908,596,390 909,123,369 Allianz MPF Conservative Fund 16.6786 16.6839 16.9985 1,151,408,738 1,152,120,960 Allianz Hong Kong Fund 54.00 58.75 59.87 1,461,279,463 1,462,185,099 Allianz Asian Fund 49.17 53.36 53.97 1,164,857,427 1,165,614,639 Allianz Flexi Balanced Fund 23.04 23.80 24.17 386,602,845 386,851,890 Allianz Greater China Fund 22.49 27.21 26.23 315,299,183 315,492,370 Allianz Oriental Pacific Fund 21.33 24.37 24.39 126,111,250 126,181,161 Allianz RMB Money Market Fund 14.84 14.85 14.87 77,526,400 77,583,327 Allianz MPF Age 65 Plus Fund 10.67 10.91 10.91 82,386,602 82,312,413 Allianz MPF Core Accumulation Fund 11.21 11.46 11.46 267,385,286 267,696,753


25


(d) Performance table (continued) Performance record for the year ended 30 June 2021

Highest issue price per unit

Lowest redemption

price per unit

Actual net investment

return

Fund expense

ratio HK$ HK$ % % Allianz Balanced Fund Class A 44.7432 35.2356 26.2 1.44% Class B 45.8054 36.0269 26.5 1.24% Class T 46.4484 36.5259 26.5 1.21% Allianz Capital Stable Fund Class A 33.8099 29.9033 11.8 1.44% Class B 34.8472 30.7810 12.0 1.24% Class T 35.8444 31.6560 12.1 1.21% Allianz Growth Fund Class A 49.2457 36.7214 33.7 1.45% Class B 50.6780 37.7427 34.0 1.24% Class T 51.7335 38.5215 34.0 1.21% Allianz Stable Growth Fund Class A 39.6487 33.0668 18.8 1.44% Class B 40.9524 34.1111 19.1 1.24% Class T 42.2625 35.1959 19.1 1.21% Allianz MPF Conservative

Fund Class A 16.8430 16.8404 0.0 0.61% Class B 16.8483 16.8457 0.0 0.59% Class T 17.1717 17.1688 0.0 0.59% Allianz Hong Kong Fund Class A 81.0381 55.4930 35.4 1.43% Class B 88.5987 60.5939 35.7 1.22% Class T 90.2975 61.7445 35.7 1.19%

Allianz Asian Fund Class A 89.3481 57.5415 44.0 1.44% Class B 97.3780 62.6342 44.3 1.23% Class T 98.5227 63.3584 44.4 1.20%


26


(d) Performance table (continued) Performance record for the year ended 30 June 2021 (continued)


Lowest redemption

price per unit


return

Fund expense

ratio HK$ HK$ % % Allianz Flexi Balanced Fund Class A 27.0980 23.8771 14.4 1.44% Class B 28.0247 24.6457 14.6 1.23% Class T 28.4707 25.0312 14.7 1.20% Allianz Greater China Fund Class A 41.4209 27.1444 39.8 1.45% Class B 50.1645 32.8335 40.0 1.25% Class T 48.3183 31.6188 40.1 1.22% Allianz Oriental Pacific Fund Class A 43.8991 30.3471 39.5 1.63% Class B 50.3473 34.7767 39.8 1.43% Class T 50.4009 34.8103 39.9 1.40% Allianz RMB Money Market Fund Class A 15.7326 14.6462 6.5 1.19% Class B 15.7420 14.6563 6.5 1.19% Class T 15.7704 14.6777 6.5 1.16% Allianz MPF Age 65 Plus Fund Class A 11.9359 11.2661 5.9 0.80% Class B 12.1701 11.4870 5.9 0.80% Class T 12.1701 11.4870 5.9 0.80%

Allianz MPF Core Accumulation

Fund

Class A 14.2072 11.7833 21.3 0.78% Class B 14.5469 12.0640 21.4 0.78% Class T 14.5469 12.0640 21.4 0.78%

No transaction cost has been incurred for the Scheme and each of its constituent funds during the year ended 30 June 2021. Note: The actual net investment return of each class is calculated by reference to the difference

between the net asset value per unit of the class at the year end date and last year end date, divided by the net asset value per unit at the last year end date to obtain the return in percentage terms.


27




Lowest redemption

price per unit


return HK$ HK$ % Allianz Balanced Fund Class A 35.9200 28.0900 2.2 Class B 36.6800 28.7100 2.8 Class T 37.1700 29.1000 3.2 Allianz Capital Stable Fund Class A 29.8773 26.5600 3.0 Class B 30.7526 27.3300 3.3 Class T 31.6267 28.1000 3.1 Allianz Growth Fund Class A 38.0000 27.7900 2.2 Class B 39.0300 28.5500 2.5 Class T 39.8100 29.1400 2.6 Allianz Stable Growth Fund Class A 33.2100 27.8200 3.1 Class B 34.2400 28.6800 3.3 Class T 35.2800 29.5900 3.3 Allianz MPF Conservative

Fund

Class A 16.8403 16.6809 1.0 Class B 16.8456 16.6862 1.0 Class T 17.1686 17.0009 1.0 Allianz Hong Kong Fund Class A 56.4500 42.3500 (0.7) Class B 61.5500 46.2100 (0.3) Class T 62.7000 47.0800 (0.3)

Allianz Asian Fund Class A 56.5062 40.4400 13.7 Class B 61.5045 43.9900 14.1 Class T 62.2153 44.4900 14.1


28




Lowest redemption

price per unit


return HK$ HK$ %


Class A 23.9600 21.0800 2.6

Class B 24.7100 21.7400 2.5 Class T 25.1300 22.0900 2.5


Class A 26.6129 20.0000 17.0

Class B 32.1893 24.1800 17.0 Class T 30.9983 23.2800 16.9


Class A 30.4021 19.3100 40.3

Class B 34.8219 22.0900 40.6 Class T 34.8528 22.1100 40.7 Allianz RMB Money Market

Fund

Class A 14.8900 14.4860 (1.3)

Class B 14.9000 14.4960 (1.3) Class T 14.9200 14.5168 (1.3) Allianz MPF Age 65 Plus Fund Class A 11.2524 10.2400 5.4 Class B 11.4732 10.4500 5.1 Class T 11.4732 10.4500 5.1

Allianz MPF Core

Accumulation Fund

Class A 12.0700 9.6100 4.3 Class B 12.3600 9.8400 4.5 Class T 12.3600 9.8400 4.5

No transaction cost has been incurred for the Scheme and each of its constituent funds during the year ended 30 June 2020. Remark: With effect from 31 March 2020, the issue and redemption prices of each constituent

fund have been rounded up to the nearest four decimal places. Note: The actual net investment return of each class is calculated by reference to the difference

between the net asset value per unit of the class at the year end date and last year end date, divided by the net asset value per unit at the last year end date to obtain the return in percentage terms.


29




Lowest redemption

price per unit


return HK$ HK$ % Allianz Balanced Fund Class A 34.89 30.87 (1.8) Class B 35.19 31.24 (0.9) Class T 35.51 31.52 (0.9) Allianz Capital Stable Fund Class A 28.83 27.00 1.5 Class B 29.60 27.71 1.6 Class T 30.50 28.50 1.8 Allianz Growth Fund Class A 36.70 31.45 (2.7) Class B 37.58 32.21 (2.5) Class T 38.23 32.80 (2.3) Allianz Stable Growth Fund Class A 31.81 29.19 0.3 Class B 32.70 30.04 0.5 Class T 33.77 31.00 0.5 Allianz MPF Conservative

Fund

Class A 16.6792 16.5353 0.9 Class B 16.6845 16.5444 0.9 Class T 16.9991 16.8465 0.9 Allianz Hong Kong Fund Class A 57.16 46.93 (4.4) Class B 62.17 50.94 (4.1) Class T 63.37 51.96 (4.2)

Allianz Asian Fund Class A 51.45 42.77 (4.0) Class B 55.80 46.33 (3.8) Class T 56.46 46.88 (3.8)


30




Lowest redemption

price per unit


return HK$ HK$ % Allianz Flexi Balanced Fund Class A 23.05 21.78 2.1 Class B 23.81 22.44 2.5 Class T 24.17 22.78 2.4 Allianz Greater China Fund Class A 24.48 19.57 (8.0) Class B 29.54 23.63 (7.7) Class T 28.49 22.79 (7.9) Allianz Oriental Pacific Fund Class A 23.56 18.73 (8.1) Class B 26.93 21.38 (7.6) Class T 26.96 21.42 (7.8) Allianz RMB Money Market

Fund

Class A 15.13 14.59 (1.1) Class B 15.14 14.60 (1.1) Class T 15.16 14.61 (1.1) Allianz MPF Age 65 Plus Fund Class A 10.67 9.94 4.5 Class B 10.92 10.18 4.3 Class T 10.92 10.18 4.3

Allianz MPF Core

Accumulation Fund


No transaction cost has been incurred for the Scheme and each of its constituent funds during the year ended 30 June 2019. Note: The actual net investment return of each class is calculated by reference to the

difference between the net asset value per unit of the class at the year end date and last year end date, divided by the net asset value per unit at the last year end date to obtain the return in percentage terms.


31




Lowest redemption

price per unit


return

HK$ HK$ %


Class A 38.20 32.20 6.8

Class B 38.39 32.33 7.3

Class T 38.86 32.94 6.2


Class A 30.08 27.41 3.0

Class B 30.79 28.06 3.3

Class T 31.70 28.89 3.1

Allianz Growth Fund

Class A 40.79 33.22 8.5

Class B 41.74 34.00 8.5

Class T 42.43 34.56 8.5


Class A 34.12 29.97 4.9

Class B 35.10 30.76 5.2

Class T 36.25 31.76 5.1


Class A 16.5385 16.5327 0.01

Class B 16.5476 16.5418 0.01

Class T 16.8499 16.8438 0.01


Class A 65.77 50.62 10.0

Class B 71.32 54.83 10.2

Class T 72.76 55.88 10.3

Allianz Asian Fund

Class A 58.71 47.11 7.8

Class B 63.44 50.79 8.2

Class T 64.14 51.41 8.2


32




Lowest redemption

price per unit


return

HK$ HK$ %


Class A 23.45 22.31 0.9

Class B 24.09 22.95 0.9 Class T 24.47 23.32 1.0


Class A 28.28 21.62 11.4

Class B 34.06 26.02 11.7 Class T 32.89 25.09 11.9


Class A 25.65 20.29 12.2

Class B 29.10 23.06 12.1 Class T 29.22 23.12 12.2


Class A 15.52 14.57 2.7

Class B 15.53 14.58 2.7 Class T 15.55 14.60 2.7 Allianz MPF Age 65 Plus Fund Class A 10.45 9.93 2.6 Class B 10.68 10.15 2.8 Class T 10.68 10.15 2.8



No transaction cost has been incurred for the Scheme and each of its constituent funds during the year ended 30 June 2018. Note: The actual net investment return of each class is calculated by reference to the



33


(d) Performance table (continued) Performance record for the year/period ended 30 June 2017


Lowest redemption

price per unit


return HK$ HK$ % Allianz Balanced Fund Class A 32.56 28.04 15.1 Class B 32.66 28.13 15.2 Class T 32.33 28.98 14.0 Allianz Capital Stable Fund Class A 27.69 25.67 4.3 Class B 28.34 26.22 4.6 Class T 29.19 27.04 4.4 Allianz Growth Fund Class A 33.62 27.78 19.4 Class B 34.39 28.23 20.2 Class T 34.97 28.80 19.8 Allianz Stable Growth Fund Class A 30.29 27.46 9.1 Class B 31.07 28.14 9.4 Class T 32.10 28.99 9.8 Allianz MPF Conservative Fund Class A 16.5335 16.5315 0.01 Class B 16.5426 16.5406 0.01 Class T 16.8449 16.8426 0.01 Allianz Hong Kong Fund Class A 51.58 41.05 23.7 Class B 55.86 44.41 23.8 Class T 56.94 45.20 24.0



34


(d) Performance table (continued) Performance record for the year/period ended 30 June 2017 (continued)


Lowest redemption

price per unit


return HK$ HK$ % Allianz Flexi Balanced Fund Class A 22.41 21.63 3.2 Class B 23.06 22.21 3.4 Class T 23.43 22.56 3.5 Allianz Greater China Fund Class A 22.14 17.76 22.4 Class B 26.62 21.32 22.8 Class T 25.67 20.56 22.7 Allianz Oriental Pacific Fund Class A 21.00 17.79 16.8 Class B 23.89 20.24 16.7 Class T 23.95 20.28 17.0 Allianz RMB Money Market Fund Class A 14.61 14.18 0.4 Class B 14.62 14.19 0.4 Class T 14.64 14.21 0.4 Allianz MPF Age 65 Plus Fund Class A* 10.03 9.95 (0.5) Class B* 10.27 9.99 1.8 Class T* 10.27 9.99 1.8 Allianz MPF Core Accumulation Fund Class A* 10.22 9.99 1.3 Class B* 10.47 9.96 3.9 Class T* 10.47 9.96 3.9

Note: The actual net investment return of each class is calculated by reference to the


* For those classes of units which commenced during the year (with asterisk), the return

is based on the movement in net asset value per unit from the commencement date to the end of the financial year.


35

Investment report (continued) (d) Performance table (continued) Performance record for the year ended 30 June 2016


Lowest redemption

price per unit


return HK$ HK$ % Allianz Balanced Fund Class A 30.87 25.65 (8.5) Class B 31.02 25.74 (8.6) Class T 32.09 26.59 (9.0) Allianz Capital Stable Fund Class A 26.73 24.94 (1.1) Class B 27.18 25.40 (0.7) Class T 27.99 26.18 (0.6) Allianz Growth Fund Class A 32.98 25.23 (14.5) Class B 33.54 25.67 (14.6) Class T 34.19 26.15 (14.5) Allianz Stable Growth Fund Class A 29.09 25.71 (4.9) Class B 29.70 26.31 (4.6) Class T 30.52 27.04 (4.5) Allianz MPF Conservative Fund Class A 16.5315 16.5303 0.01 Class B 16.5406 16.5394 0.01 Class T 16.8426 16.8414 0.01 Allianz Hong Kong Fund Class A 52.60 36.50 (21.3) Class B 56.85 39.48 (21.2) Class T 57.72 40.13 (21.0)



36




Lowest redemption

price per unit


return HK$ HK$ % Allianz Flexi Balanced Fund Class A 22.04 20.91 (1.5) Class B 22.58 21.42 (1.3) Class T 22.92 21.76 (1.4) Allianz Greater China Fund Class A 22.49 15.55 (20.7) Class B 27.02 18.62 (20.8) Class T 26.04 17.98 (20.7) Allianz Oriental Pacific Fund Class A 20.39 16.05 (11.8) Class B 23.16 18.23 (11.7) Class T 23.19 18.27 (11.8) Allianz RMB Money Market Fund Class A 15.09 14.41 (3.6) Class B 15.10 14.42 (3.6) Class T 15.11 14.44 (3.5)




37

Investment report (continued) (d) Performance table (continued) Performance record for the year ended 30 June 2015


Lowest redemption

price per unit


return HK$ HK$ % Allianz Balanced Fund Class A 32.07 28.32 1.7 Class B 32.22 28.52 1.5 Class T 33.40 29.56 1.1 Allianz Capital Stable Fund Class A 27.52 26.28 (1.9) Class B 27.97 26.69 (1.8) Class T 28.79 27.45 (1.6) Allianz Growth Fund Class A 34.40 29.13 3.4 Class B 34.98 29.56 3.6 Class T 35.64 30.08 3.8 Allianz Stable Growth Fund Class A 30.12 27.82 (0.6) Class B 30.71 28.33 (0.4) Class T 31.59 29.12 (0.3) Allianz MPF Conservative Fund Class A 16.5304 16.5223 0.05 Class B 16.5395 16.5316 0.05 Class T 16.8415 16.8290 0.07 Allianz Hong Kong Fund Class A 57.67 44.21 19.9 Class B 62.32 47.76 20.0 Class T 63.27 48.46 19.9



38

Investment report (continued) (d) Performance table (continued) Performance record for the year ended 30 June 2015 (continued)


Lowest redemption

price per unit


return HK$ HK$ % Allianz Flexi Balanced Fund Class A 22.42 21.23 2.9 Class B 22.97 21.75 3.0 Class T 23.31 22.05 3.2 Allianz Greater China Fund Class A 24.96 18.77 17.5 Class B 29.98 22.56 16.8 Class T 28.91 21.72 17.0 Allianz Oriental Pacific Fund Class A 21.88 18.48 2.1 Class B 24.86 20.98 2.1 Class T 24.89 21.01 2.2 Allianz RMB Money Market Fund Class A 15.12 14.87 1.2 Class B 15.13 14.88 1.2 Class T 15.13 14.88 1.3




39


(d) Performance table (continued) Performance record for the year/period ended 30 June 2014


Lowest redemption

price per unit


return HK$ HK$ % Allianz Balanced Fund Class A 30.23 26.24 14.6 Class B 30.45 26.46 14.4 Class T 31.61 27.48 14.4 Allianz Capital Stable Fund Class A 27.25 25.15 8.1 Class B 27.68 25.49 8.4 Class T 28.45 26.16 8.5 Allianz Growth Fund Class A 31.67 26.68 17.8 Class B 32.16 27.04 18.1 Class T 32.71 27.54 17.9 Allianz Stable Growth Fund Class A 29.24 26.21 11.1 Class B 29.78 26.63 11.4 Class T 30.58 27.37 11.3 Allianz MPF Conservative Fund Class A 16.5261 16.5208 0.01 Class B 16.5355 16.5302 0.01 Class T 16.8331 16.8272 0.01

Allianz Hong Kong Fund Class A 45.21 37.67 13.2 Class B 48.73 40.61 13.4 Class T 49.50 41.20 13.5 Allianz Asian Fund Class A 42.91 33.20 26.1 Class B 46.01 35.66 25.8 Class T 46.62 36.13 25.8


40




Lowest redemption

price per unit


return HK$ HK$ % Allianz Flexi Balanced Fund Class A 21.39 20.42 4.7 Class B 21.90 20.84 5.0 Class T 22.19 21.11 5.1 Allianz Greater China Fund Class A 19.25 15.57 20.8 Class B 23.26 18.78 21.1 Class T 22.36 18.13 20.5 Allianz Oriental Pacific Fund Class A 20.19 17.05 16.1 Class B 22.95 19.32 16.4 Class T 22.96 19.32 16.5 Allianz RMB Money Market Fund Class A* 15.16 14.81 (0.6) Class B* 15.17 14.82 (0.5) Class T* 15.17 14.82 (0.5)






41




Lowest redemption

price per unit


return HK$ HK$ % Allianz Balanced Fund Class A 28.28 24.10 7.5 Class B 28.55 24.33 7.4 Class T 29.64 25.27 7.4 Allianz Capital Stable Fund Class A 26.35 24.60 1.9 Class B 26.68 24.90 2.0 Class T 27.41 25.61 1.7 Allianz Growth Fund Class A 29.26 23.80 10.3 Class B 29.63 24.10 10.2 Class T 30.20 24.56 10.3 Allianz Stable Growth Fund Class A 27.80 24.89 4.6 Class B 28.24 25.24 4.7 Class T 29.05 26.03 4.3 Allianz MPF Conservative Fund Class A 16.5207 16.5127 0.05 Class B 16.5301 16.5245 0.04 Class T 16.8272 16.8168 0.06 Allianz Hong Kong Fund Class A 43.92 35.45 7.2 Class B 47.33 38.05 7.7 Class T 48.00 38.66 7.6



42




Lowest redemption

price per unit


return HK$ HK$ % Allianz Flexi Balanced Fund Class A 21.22 19.74 3.8 Class B 21.65 20.16 3.7 Class T 21.94 20.40 3.9 Allianz Greater China Fund Class A 17.56 14.30 7.9 Class B 21.20 17.12 8.8 Class T 20.47 16.60 8.4 Allianz Oriental Pacific Fund Class A 18.67 14.59 14.1 Class B 21.18 16.55 13.9 Class T 21.18 16.55 13.9




43

Investment report (continued) (d) Performance table (continued) Performance record for the year/period ended 30 June 2012


Lowest redemption

price per unit


return HK$ HK$ % Allianz Balanced Fund 26.76 21.69 (6.8) Class A 26.98 21.85 (6.6) Class B 27.98 22.67 (6.6) Class T Allianz Capital Stable Fund 25.54 23.35 (1.7) Class A 25.82 23.65 (1.6) Class B 26.64 24.37 (1.8) Class T Allianz Growth Fund 27.42 20.71 (9.4) Class A 27.62 20.92 (8.9) Class B 28.22 21.34 (9.2) Class T Allianz Stable Growth Fund Class A 26.68 23.07 (4.0) Class B 27.02 23.37 (4.0) Class T 27.83 24.07 (3.9) Allianz MPF Conservative Fund Class A 16.5181 16.5097 0.01 Class B 16.5312 16.5229 0.01 Class T 16.8225 16.8135 0.02 Allianz Hong Kong Fund Class A 42.30 29.37 (12.7) Class B 45.53 31.60 (12.9) Class T 46.12 32.03 (12.7)



44




Lowest redemption

price per unit


return HK$ HK$ % Allianz Flexi Balanced Fund Class A 19.71 18.56 1.2 Class B 20.11 18.91 1.7 Class T 20.34 19.12 1.7 Allianz Greater China Fund Class A* 16.83 13.97 (1.5) Class B* 20.06 15.00 17.7 Class T* 19.45 14.58 14.1 Allianz Oriental Pacific Fund Class A* 15.90 14.02 (0.9) Class B* 18.08 15.00 12.5 Class T* 18.08 15.00 12.5






45


Investment policies The Scheme offers thirteen constituent funds with different investment policies. The MPF Conservative Fund, MPF Age 65 Plus Fund and MPF Core Accumulation Fund are constituent funds required under the Mandatory Provident Fund Schemes (General) Regulation. In addition to MPF Conservative Fund, MPF Age 65 Plus Fund and MPF Core Accumulation Fund, the other constituent funds of the Scheme are Balanced Fund, Capital Stable Fund, Growth Fund, Stable Growth Fund, Hong Kong Fund, Asian Fund, Flexi Balanced Fund, Greater China Fund, Oriental Pacific Fund and RMB Money Market Fund. The respective investment objectives and policies are set out below. There have been no significant changes to the investment policies of the constituent funds during the year that will materially affect the risk attached to the investments, other than as stated below.

Allianz Balanced Fund (a) Objective

The Allianz Balanced Fund’s investment objective is to achieve an above average return over the long term.

(b) Balance of investments

(prior to 15 January 2021)

The Allianz Balanced Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Balanced Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to achieve a high level (above market) of overall return over the long term by investing in a diversified portfolio of global equities and fixed-interest securities and is expected to invest 70% of its assets in equities and 30% in fixed-interest securities. The fixed income portion will consist of a range of instruments issued in countries around the world. The equity portion of the Allianz Choice Balanced Fund will be invested primarily in the Hong Kong, Japan, North American and European markets with a smaller proportion at the discretion of the Portfolio Manager being invested in other Asian countries and emerging markets. The Allianz Choice Balanced Fund is a portfolio management fund investing substantially all its assets in other sub-funds of Allianz Global Investors Choice Fund. Specifically, the Allianz Choice Balanced Fund will be investing in Allianz Choice “Best Styles” US Fund, Allianz Choice “Best Styles” Europe Fund, Allianz Choice Japan Fund, Allianz Choice Global Fixed Income Fund, Allianz Choice Asian Fund, Allianz Choice Hong Kong Fund and Allianz Choice HK$ Cash Fund or such other sub-funds of Allianz Global Investors Choice Fund as determined by the Portfolio Manager from time to time to be appropriate to provide the desired investment exposure for the Allianz Choice Balanced Fund based on its investment objective and policy (“Second Layer Underlying APIFs”). All Second Layer Underlying APIFs are approved as APIFs by the MPFA and authorized by the SFC. SFC authorization is not a recommendation or endorsement of an APIF nor does it guarantee the commercial merits of an APIF or its performance. It does not mean the APIF is suitable for all scheme participants or fund holders nor is it an endorsement of its suitability for any particular scheme participant or fund holder.


46


Allianz Balanced Fund (continued)

(b) Balance of investments (continued) (prior to 15 January 2021) (continued) The Allianz Choice Balanced Fund may invest at least: (i) 60% and up to 80% of its assets in global equities; and (ii) 20% and up to 40% of its assets in fixed-interest securities via the Second Layer

Underlying APIFs.

The Allianz Choice Balanced Fund will invest in 5 or more Second Layer Underlying APIFs. The Second Layer Underlying APIFs will be actively selected and the extent of the investment of the Allianz Choice Balanced Fund in Second Layer Underlying APIFs will be allocated by the Portfolio Manager by reference to their underlying investments. In particular, the Allianz Choice Balanced Fund may invest up to 40% of its latest available NAV in the Allianz Choice Global Fixed Income Fund which aims to achieve long-term capital growth and income primarily through investment in a diversified portfolio of global fixed-income securities denominated in multiple currencies. Through the Second Layer Underlying APIFs, the Allianz Choice Balanced Fund will: (i) primarily invest in equities which are broadly diversified (in terms of industry

sectors and/or companies of a particular capital size) with a majority of which are listed and traded on stock exchanges approved by MPFA; and

(ii) invest in fixed-interest securities which carry a rating of BBB- or above (as rated by Standard & Poor’s) or Baa3 or above (as rated by Moody’s Investors Services Inc.) or which in the opinion of the Portfolio Manager would be rated in the range of such rating and fulfill the minimum credit rating requirements set out by MPFA and broadly diversified, for example in terms of the number of issuers.

The Allianz Choice Balanced Fund may also hold cash for ancillary purposes. (with effect from 15 January 2021)

The Allianz Balanced Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Balanced Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to achieve a high level (above market) of overall return over the long term by investing in a diversified portfolio of global equities and fixed-interest securities and is expected to invest 70% of its assets in equities and 30% in fixed-interest securities. The fixed income portion will consist of a range of instruments issued in countries around the world. The equity portion of the Allianz Choice Balanced Fund will be invested primarily in the Hong Kong, Japan, North American and European markets with a smaller proportion at the discretion of the Portfolio Manager being invested in other Asian countries and emerging markets.


47



(b) Balance of investments (continued) (with effect from 15 January 2021) (continued) The Allianz Choice Balanced Fund is a portfolio management fund investing substantially all its assets in (i) other sub-funds of Allianz Global Investors Choice Fund (“Second Layer Underlying APIFs”) and/or (ii) index-tracking collective investment scheme (“Underlying ITCIS”) as determined by the Portfolio Manager from time to time to be appropriate to provide the desired investment exposure for the Allianz Choice Balanced Fund based on its investment objective and policy. All Second Layer Underlying APIFs are approved as APIFs by the MPFA and authorized by the SFC and all Underlying ITCIS are approved by the MPFA. In granting such approval and authorization neither the MPFA nor the SFC makes any official recommendation or endorsement of any Second Layer Underlying APIF or Underlying ITCIS (as the case may be) nor do they guarantee the commercial merits of any Second Layer Underlying APIF or Underlying ITCIS or its performance. They do not mean any Second Layer Underlying APIF or Underlying ITCIS is suitable for all scheme participants or fund holders nor are they an endorsement of its suitability for any particular scheme participant or fund holder.

The Allianz Choice Balanced Fund may invest at least: (i) 60% and up to 80% of its assets in global equities; and (ii) 20% and up to 40% of its assets in fixed-interest securities via the Second Layer

Underlying APIFs and/or the Underlying ITCIS. The Allianz Choice Balanced Fund will invest in 5 or more Second Layer Underlying APIFs and/or Underlying ITCIS.

It is expected that the Allianz Choice Balanced Fund will invest 70% to 100% of its NAV in the Second Layer Underlying APIFs and not more than 30% of its NAV in the Underlying ITCIS.

The Second Layer Underlying APIFs and/or the Underlying ITCIS will be actively selected and the extent of the investment of the Allianz Choice Balanced Fund in Second Layer Underlying APIFs and/or Underlying ITCIS will be allocated by the Portfolio Manager by reference to their underlying investments. In particular, the Allianz Choice Balanced Fund may invest up to 40% of its latest available NAV in the Allianz Choice Global Fixed Income Fund which aims to achieve long-term capital growth and income primarily through investment in a diversified portfolio of global fixed-income securities denominated in multiple currencies.


48



(b) Balance of investments (continued) (with effect from 15 January 2021) (continued) Through the Second Layer Underlying APIFs and/or the Underlying ITCIS, the Allianz Choice Balanced Fund will:

(i) primarily invest in equities which are broadly diversified (in terms of industry


(ii) invest in fixed-interest securities which carry a rating of BBB- or above (as rated

by Standard & Poor’s) or Baa3 or above (as rated by Moody’s Investors Services Inc.) or which in the opinion of the Portfolio Manager would be rated in the range of such rating and fulfill the minimum credit rating requirements set out by MPFA and broadly diversified, for example in terms of the number of issuers. Where the Underlying ITCIS in which the Allianz Choice Balanced Fund invests tracks a bond index, such bond index will not have a significant portion of the constituent securities that do not satisfy the minimum credit rating requirements set out by MPFA.

The Allianz Choice Balanced Fund may also hold cash for ancillary purposes.

(c) Security lending and repurchase agreements


The Allianz Balanced Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Balanced Fund and the Second Layer Underlying APIFs currently do not intend to engage in security lending transactions and/or repurchase agreements. (with effect from 15 January 2021)

The Allianz Balanced Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Balanced Fund and the Second Layer Underlying APIFs currently do not intend to engage in security lending transactions and/or repurchase agreements, although the Underlying ITCIS may engage in security lending transactions and/or repurchase agreements.


49


Allianz Balanced Fund (continued) (d) Futures and options


None of the Allianz Balanced Fund, the Allianz Choice Balanced Fund and the Second Layer Underlying APIFs will enter into any financial futures contracts or financial option contracts other than for hedging purpose.

(with effect from 15 January 2021)

None of the Allianz Balanced Fund, the Allianz Choice Balanced Fund and the Second Layer Underlying APIFs will enter into any financial futures contracts or financial option contracts other than for hedging purpose, although the Underlying ITCIS may enter into financial derivatives for hedging or non-hedging purpose.

(e) Risks

The value of Units in the Allianz Balanced Fund is expected to be less volatile than the value of Units in the Allianz Greater China Fund, the Allianz Oriental Pacific Fund, the Allianz Growth Fund, the Allianz Asian Fund or the Allianz Hong Kong Fund but the level of risk of investing in the Allianz Balanced Fund is likely to be higher than the other Constituent Funds. The Allianz Balanced Fund is designed for Members who are willing to assume an above average level of risk. The performance of the Allianz Balanced Fund is subject to a number of risks, including the following:

• risk of interest rate changes • currency risk

• creditworthiness risk • downgrading risk • company-specific risk • risk of settlement default • counterparty risk • country and region risk • risk of early termination • concentration risk • general market risk • political and social risks • liquidity risk • custodial risk • emerging market risks • performance risk • constituent fund capital risk • risk of restricted flexibility • inflation risk • risk of changes in underlying conditions • risk of changes to the Trust Deed, to the investment policy and to the other basic aspects

of a Constituent Fund • key personnel risk • valuation risk


50



(e) Risks (continued) • Eurozone risk • risk of increased transaction costs arising from unit movements at the APIF level • derivative risk • equity investment risk and volatility risk • risk associated with specific nature of portfolio management funds

Allianz Capital Stable Fund (a) Objective

The Allianz Capital Stable Fund’s investment objective is to minimise the risk of capital loss whilst providing some opportunity for capital growth.



The Allianz Capital Stable Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Capital Stable Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to provide investors with capital preservation combined with steady capital appreciation over the long term by investing in a diversified portfolio of global equities and fixed-interest securities and is expected to invest 30% of its assets in equities and 70% in fixed-interest securities. The fixed income portion will consist of a range of instruments issued in countries around the world. The equity portion of the Allianz Choice Capital Stable Fund will be invested primarily in the Hong Kong, Japan, North American and European markets with a smaller proportion at the discretion of the Portfolio Manager being invested in other Asian countries and emerging markets. The Allianz Choice Capital Stable Fund is a portfolio management fund investing substantially all its assets in other sub-funds of Allianz Global Investors Choice Fund. Specifically, the Allianz Choice Capital Stable Fund will be investing in Allianz Choice “Best Styles” US Fund, Allianz Choice “Best Styles” Europe Fund, Allianz Choice Japan Fund, Allianz Choice Global Fixed Income Fund, Allianz Choice Asian Fund, Allianz Choice Hong Kong Fund and Allianz Choice HK$ Cash Fund or such other sub-funds of Allianz Global Investors Choice Fund as determined by the Portfolio Manager from time to time to be appropriate to provide the desired investment exposure for Allianz Choice Capital Stable Fund based on its investment objective and policy (“Second Layer Underlying APIFs”). All Second Layer Underlying APIFs are approved as APIFs by the MPFA and authorized by the SFC. SFC authorization is not a recommendation or endorsement of an APIF nor does it guarantee the commercial merits of an APIF or its performance. It does not mean the APIF is suitable for all scheme participants or fund holders nor is it an endorsement of its suitability for any particular scheme participant or fund holder.


51


Allianz Capital Stable Fund (continued) (b) Balance of investments (continued)

(prior to 15 January 2021) (continued)

The Allianz Choice Capital Stable Fund may invest at least: (i) 20% and up to 40% of its assets in global equities; and

(ii) 60% and up to 80% of its assets in fixed-interest securities via the Second Layer

Underlying APIFs. The Allianz Choice Capital Stable Fund will invest in 5 or more Second Layer Underlying APIFs.

The Second Layer Underlying APIFs will be actively selected and the extent of the investment of the Allianz Choice Capital Stable Fund in the Second Layer Underlying APIFs will be allocated by the Portfolio Manager by reference to their underlying investments. In particular, the Allianz Choice Capital Stable Fund may invest up to 80% of its latest available NAV in the Allianz Choice Global Fixed Income Fund which aims to achieve long-term capital growth and income primarily through investment in a diversified portfolio of global fixed-income securities denominated in multiple currencies.

Through the Second Layer Underlying APIFs, the Allianz Choice Capital Stable Fund will: (i) invest in equities which are broadly diversified (in terms of industry sectors and/or

companies of a particular capital size) with a majority of which are listed and traded on stock exchanges approved by MPFA; and

(ii) primary invest in fixed-interest securities which carry a rating of BBB- or above (as

rated by Standard & Poor’s) or Baa3 or above (as rated by Moody’s Investors Services Inc.) or which in the opinion of the Portfolio Manager would be rated in the range of such rating and fulfill the minimum credit rating requirements set out by MPFA and broadly diversified, for example in terms of the number of issuers.

The Allianz Choice Capital Stable Fund may also hold cash for ancillary purposes.


The Allianz Capital Stable Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Capital Stable Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to provide investors with capital preservation combined with steady capital appreciation over the long term by investing in a diversified portfolio of global equities and fixed-interest securities and is expected to invest 30% of its assets in equities and 70% in fixed-interest securities. The fixed income portion will consist of a range of instruments issued in countries around the world. The equity portion of the Allianz Choice Capital Stable Fund will be invested primarily in the Hong Kong, Japan, North American and European markets with a smaller proportion at the discretion of the Portfolio Manager being invested in other Asian countries and emerging markets.


52


Allianz Capital Stable Fund (continued) (b) Balance of investments (continued)

(with effect from 15 January 2021) (continued) The Allianz Choice Capital Stable Fund is a portfolio management fund investing substantially all its assets in (i) other sub-funds of Allianz Global Investors Choice Fund (“Second Layer Underlying APIFs”) and/or (ii) ITCIS (“Underlying ITCIS”) as determined by the Portfolio Manager from time to time to be appropriate to provide the desired investment exposure for Allianz Choice Capital Stable Fund based on its investment objective and policy. All Second Layer Underlying APIFs are approved as APIFs by the MPFA and authorized by the SFC and all Underlying ITCIS are approved by the MPFA. In granting such approval and authorization neither the MPFA nor the SFC makes any official recommendation or endorsement of any Second Layer Underlying APIF or Underlying ITCIS (as the case may be) nor do they guarantee the commercial merits of any Second Layer Underlying APIF or Underlying ITCIS or its performance. They do not mean any Second Layer Underlying APIF or Underlying ITCIS is suitable for all scheme participants or fund holders nor are they an endorsement of its suitability for any particular scheme participant or fund holder.

The Allianz Choice Capital Stable Fund may invest at least: (i) 20% and up to 40% of its assets in global equities; and


Underlying APIFs and/or the Underlying ITCIS.

The Allianz Choice Capital Stable Fund will invest in 5 or more Second Layer Underlying APIFs and/or Underlying ITCIS.

It is expected that the Allianz Choice Capital Stable Fund will invest 70% to 100% of its NAV in the Second Layer Underlying APIFs and not more than 30% of its NAV in the Underlying ITCIS.

The Second Layer Underlying APIFs and/or the Underlying ITCIS will be actively selected and the extent of the investment of the Allianz Choice Capital Stable Fund in the Second Layer Underlying APIFs will be allocated by the Portfolio Manager by reference to their underlying investments. In particular, the Allianz Choice Capital Stable Fund may invest up to 80% of its latest available NAV in the Allianz Choice Global Fixed Income Fund which aims to achieve long-term capital growth and income primarily through investment in a diversified portfolio of global fixed-income securities denominated in multiple currencies.


53


Allianz Capital Stable Fund (continued)

(b) Balance of investments (continued)

(with effect from 15 January 2021) (continued) Through the Second Layer Underlying APIFs and/or the Underlying ITCIS, the Allianz Choice Capital Stable Fund will: (i) invest in equities which are broadly diversified (in terms of industry sectors and/or


(ii) primarily invest in fixed-interest securities which carry a rating of BBB- or above (as rated by Standard & Poor’s) or Baa3 or above (as rated by Moody’s Investors Services Inc.) or which in the opinion of the Portfolio Manager would be rated in the range of such rating and fulfill the minimum credit rating requirements set out by MPFA and broadly diversified, for example in terms of the number of issuers. Where the Underlying ITCIS in which the Allianz Choice Capital Stable Fund invests tracks a bond index, such bond index will not have a significant portion of the constituent securities that do not satisfy the minimum credit rating requirements set out by MPFA.

The Allianz Choice Capital Stable Fund may also hold cash for ancillary purposes.



The Allianz Capital Stable Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Capital Stable Fund and the Second Layer Underlying APIFs currently do not intend to engage in security lending transactions and/or repurchase agreements. (with effect from 15 January 2021)

The Allianz Capital Stable Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Capital Stable Fund and the Second Layer Underlying APIFs currently do not intend to engage in security lending transactions and/or repurchase agreements, although the Underlying ITCIS may engage in security lending transactions and/or repurchase agreements.

(d) Futures and options


None of the Allianz Capital Stable Fund, the Allianz Choice Capital Stable Fund and the Second Layer Underlying APIFs will enter into any financial futures contracts or financial option contracts other than for hedging purpose.


54


Allianz Capital Stable Fund (continued)

(d) Futures and options (continued)


None of the Allianz Capital Stable Fund, the Allianz Choice Capital Stable Fund and the Second Layer Underlying APIFs will enter into any financial futures contracts or financial option contracts other than for hedging purpose, although the Underlying ITCIS may enter into financial derivatives for hedging or non-hedging purpose.

(e) Risks

The level of risk of investing in the Allianz Capital Stable Fund is likely to be lower than the Allianz Greater China Fund, the Allianz Oriental Pacific Fund, the Allianz Growth Fund, the Allianz Balanced Fund and the Allianz Stable Growth Fund, the Allianz Asian Fund or the Allianz Hong Kong Fund but higher than the other Constituent Funds. The Allianz Capital Stable Fund is designed for Members who are willing to assume a relatively low level of risk.

The performance of the Allianz Capital Stable Fund is subject to a number of risks, including the following:

• risk of interest rate changes • currency risk • creditworthiness risk • downgrading risk • company-specific risk • risk of settlement default • counterparty risk • country and region risk • risk of early termination • concentration risk • general market risk • political and social risks • liquidity risk • custodial risk • emerging market risks • performance risk • constituent fund capital risk

• risk of restricted flexibility • inflation risk • risk of changes in underlying conditions • risk of changes to the Trust Deed, to the investment policy and to the other basic aspects of a Constituent Fund

• key personnel risk • valuation risk • Eurozone risk • risk of increased transaction costs arising from unit movements at the APIF level • derivative risk • equity investment risk and volatility risk • risk associated with specific nature of portfolio management funds


55

Investment report (continued) Allianz Growth Fund (a) Objective

The Allianz Growth Fund’s investment objective is to provide capital growth with controlled levels of risk through global diversification.


(prior to 15 January 2021) The Allianz Growth Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Growth Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to maximise long term overall returns by investing primarily in global equities. The Allianz Choice Growth Fund may invest in the countries comprised in the MSCI World Index which covers all the major world stock markets including those in Japan, North America, Asia and Europe. The Allianz Choice Growth Fund is a portfolio management fund investing substantially all its assets in other sub-funds of Allianz Global Investors Choice Fund. Specifically, Allianz Choice Growth Fund will be investing in Allianz Choice “Best Styles” US Fund, Allianz Choice “Best Styles” Europe Fund, Allianz Choice Japan Fund, Allianz Choice Global Fixed Income Fund, Allianz Choice Asian Fund, Allianz Choice Hong Kong Fund and Allianz Choice HK$ Cash Fund or such other sub-funds of Allianz Global Investors Choice Fund as determined by the Portfolio Manager from time to time to be appropriate to provide the desired investment exposure for the Allianz Choice Growth Fund based on its investment objective and policy (“Second Layer Underlying APIFs”). All Second Layer Underlying APIFs are approved as APIFs by the MPFA and authorized by the SFC. SFC authorization is not a recommendation or endorsement of an APIF nor does it guarantee the commercial merits of an APIF or its performance. It does not mean the APIF is suitable for all scheme participants or fund holders nor is it an endorsement of its suitability for any particular scheme participant or fund holder. .

The Allianz Choice Growth Fund may invest: (i) at least 80% and up to 100% of its assets in global equities; and

(ii) up to 20% of its assets in fixed-interest securities via the Second Layer Underlying

APIFs. Generally, the Allianz Choice Growth Fund is expected to invest 90% of its assets in global equities and 10% in fixed-interest securities via the Second Layer Underlying APIFs. The Allianz Choice Growth Fund will invest in 5 or more Second Layer Underlying APIFs. The Second Layer Underlying APIFs will be actively selected and the extent of the investment of the Allianz Choice Growth Fund in Second Layer Underlying APIFs will be allocated by reference to their underlying investments. In particular, the Allianz Choice Growth Fund may invest up to 40% of its latest available NAV in the Allianz Choice Hong Kong Fund which aims to achieve long term capital growth by investing primarily in Hong Kong equities, including Chinese securities listed in Hong Kong.


56


Allianz Growth Fund (continued)

(b) Balance of investments (continued) (prior to 15 January 2021) (continued) Through the Second Layer Underlying APIFs, the Allianz Choice Growth Fund will: (i) primarily invest in equities which are broadly diversified (in terms of industry


(ii) invest in fixed-interest securities which carry a rating of BBB- or above (as rated by Standard & Poor’s) or Baa3 or above (as rated by Moody’s Investors Services Inc.) or which in the opinion of the Portfolio Manager would be rated in the range of such rating and fulfill the minimum credit rating requirements set out by MPFA and broadly diversified, for example in terms of the number of issuers.

The Allianz Choice Growth Fund may also hold cash for ancillary purposes. (with effect from 15 January 2021) The Allianz Growth Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Growth Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to maximise long term overall returns by investing primarily in global equities. The Allianz Choice Growth Fund may invest in the countries comprised in the MSCI World Index which covers all the major world stock markets including those in Japan, North America, Asia and Europe. The Allianz Choice Growth Fund is a portfolio management fund investing substantially all its assets in (i) other sub-funds of Allianz Global Investors Choice Fund (“Second Layer Underlying APIFs”) and/or (ii) ITCIS (“Underlying ITCIS”) as determined by the Portfolio Manager from time to time to be appropriate to provide the desired investment exposure for the Allianz Choice Growth Fund based on its investment objective and policy. All Second Layer Underlying APIFs are approved as APIFs by the MPFA and authorized by the SFC and all Underlying ITCIS are approved by the MPFA. In granting such approval and authorization neither the MPFA nor the SFC makes any official recommendation or endorsement of any Second Layer Underlying APIF or Underlying ITCIS (as the case may be) nor do they guarantee the commercial merits of any Second Layer Underlying APIF or Underlying ITCIS or its performance. They do not mean any Second Layer Underlying APIF or Underlying ITCIS is suitable for all scheme participants or fund holders nor are they an endorsement of its suitability for any particular scheme participant or fund holder.


57


Allianz Growth Fund (continued) (b) Balance of investments (continued)

(with effect from 15 January 2021) (continued) The Allianz Choice Growth Fund may invest: (i) at least 80% and up to 100% of its assets in global equities; and

(ii) up to 20% of its assets in fixed-interest securities via the Second Layer Underlying

APIFs and/or the Underlying ITCIS. Generally, the Allianz Choice Growth Fund is expected to invest 90% of its assets in global equities and 10% in fixed-interest securities via the Second Layer Underlying APIFs and/or the Underlying ITCIS. The Allianz Choice Growth Fund will invest in 5 or more Second Layer Underlying APIFs and/or Underlying ITCIS. It is expected that the Allianz Choice Growth Fund will invest 70% to 100% of its NAV in the Second Layer Underlying APIFs and not more than 30% of its NAV in the Underlying ITCIS. The Second Layer Underlying APIFs and/or the Underlying ITCIS will be actively selected and the extent of the investment of the Allianz Choice Growth Fund in Second Layer Underlying APIFs and/or Underlying ITCIS will be allocated by reference to their underlying investments. In particular, the Allianz Choice Growth Fund may invest up to 40% of its latest available NAV in the Allianz Choice Hong Kong Fund which aims to achieve long term capital growth by investing primarily in Hong Kong equities, including Chinese securities listed in Hong Kong.

Through the Second Layer Underlying APIFs and/or the Underlying ITCIS, the Allianz Choice Growth Fund will: (i) primarily invest in equities which are broadly diversified (in terms of industry


(ii) invest in fixed-interest securities which carry a rating of BBB- or above (as rated by Standard & Poor’s) or Baa3 or above (as rated by Moody’s Investors Services Inc.) or which in the opinion of the Portfolio Manager would be rated in the range of such rating and fulfill the minimum credit rating requirements set out by MPFA and broadly diversified, for example in terms of the number of issuers. Where the Underlying ITCIS in which the Allianz Choice Growth Fund invests tracks a bond index, such bond index will not have a significant portion of the constituent securities that do not satisfy the minimum credit rating requirements set out by MPFA.

The Allianz Choice Growth Fund may also hold cash for ancillary purposes.


58


Allianz Growth Fund (continued) (c) Security lending and repurchase agreements

(prior to 15 January 2021) The Allianz Growth Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Growth Fund and the Second Layer Underlying APIFs currently do not intend to engage in security lending transactions and/or repurchase agreements. (with effect from 15 January 2021)

The Allianz Growth Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Growth Fund and the Second Layer Underlying APIFs currently do not intend to engage in security lending transactions and/or repurchase agreements, although the Underlying ITCIS may engage in security lending transactions and/or repurchase agreements.

(d) Futures and options (prior to 15 January 2021) None of the Allianz Growth Fund, the Allianz Choice Growth Fund and the Second Layer Underlying APIFs will enter into any financial futures contracts or financial option contracts other than for hedging purpose.


None of the Allianz Growth Fund, the Allianz Choice Growth Fund and the Second Layer Underlying APIFs will enter into any financial futures contracts or financial option contracts other than for hedging purpose, although the Underlying ITCIS may enter into financial derivatives for hedging or non-hedging purpose.

(e) Risks

The value of Units in the Allianz Growth Fund is expected to fluctuate more than the value of Units in the Allianz Balanced Fund, the Allianz Stable Growth Fund, the Allianz Capital Stable Fund, the Allianz Flexi Balanced Fund, the Allianz RMB Money Market Fund or the Allianz MPF Conservative Fund. Units in the Allianz Growth Fund are accordingly only suitable for Members who are willing to assume a relatively higher level of risk to achieve potentially higher long term returns.


59


Allianz Growth Fund (continued) (e) Risks (continued)

The performance of the Allianz Growth Fund is subject to a number of risks, including the following:

• risk of interest rate changes • currency risk • creditworthiness risk • downgrading risk • company-specific risk • risk of settlement default • counterparty risk • country and region risk • risk of early termination • concentration risk • general market risk • political and social risks • liquidity risk • custodial risk • emerging market risks • performance risk • constituent fund capital risk • risk of restricted flexibility • inflation risk • risk of changes in underlying conditions • risk of changes to the Trust Deed, to the investment policy and to the other basic aspects of a Constituent Fund


Allianz Stable Growth Fund (a) Objective

The Allianz Stable Growth Fund’s investment objective is to achieve a stable overall return over the long term.


60


Allianz Stable Growth Fund (continued)

(b) Balance of investments (prior to 15 January 2021) The Allianz Stable Growth Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Stable Growth Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to achieve a stable overall return over the long term by investing in a diversified portfolio of global equities and fixed-interest securities and is expected to invest 50% of its assets in equities and 50% in fixed-interest securities. The fixed income portion will consist of a range of instruments issued in countries around the world. The equity portion of the Allianz Choice Stable Growth Fund will be invested primarily in the Hong Kong, Japan, North American and European markets with a smaller proportion at the discretion of the Portfolio Manager being invested in other Asian countries and emerging markets.

The Allianz Choice Stable Growth Fund is a portfolio management fund investing substantially all its assets in other sub-funds of Allianz Global Investors Choice Fund. Specifically, the Allianz Choice Stable Growth Fund will be investing in Allianz Choice “Best Styles” US Fund, Allianz Choice “Best Styles” Europe Fund, Allianz Choice Japan Fund, Allianz Choice Global Fixed Income Fund, Allianz Choice Asian Fund, Allianz Choice Hong Kong Fund and Allianz Choice HK$ Cash Fund or such other sub-funds of the Allianz Global Investors Choice Fund as determined by the Portfolio Manager from time to time to be appropriate to provide the desired investment exposure for the Allianz Choice Stable Growth Fund based on its investment objective and policy (“Second Layer Underlying APIFs”). All Second Layer Underlying APIFs are approved as APIFs by the MPFA and authorized by the SFC. SFC authorization is not a recommendation or endorsement of an APIF nor does it guarantee the commercial merits of an APIF or its performance. It does not mean the APIF is suitable for all scheme participants or fund holders nor is it an endorsement of its suitability for any particular scheme participant or fund holder.

The Allianz Choice Stable Growth Fund may invest at least: (i) 40% and up to 60% of its assets in global equities; and (ii) 40% and up to 60% of its assets in fixed-interest securities via the Second Layer

Underlying APIFs.

The Allianz Choice Stable Growth Fund will invest in 5 or more Second Layer Underlying APIFs. The Second Layer Underlying APIFs will be actively selected and the extent of the investment of the Allianz Choice Stable Growth Fund in Second Layer Underlying APIFs will be allocated by the Portfolio Manager by reference to their underlying investments. In particular, the Allianz Choice Stable Growth Fund may invest up to 60% of its latest available NAV in the Allianz Choice Global Fixed Income Fund which aims to achieve long-term capital growth and income primarily through investment in a diversified portfolio of global fixed-income securities denominated in multiple currencies.


61



(b) Balance of investments (continued) (prior to 15 January 2021) (continued) Through the Second Layer Underlying APIFs, the Allianz Choice Stable Growth Fund will:

(i) invest in equities which are broadly diversified (in terms of industry sectors and/or


(ii) invest in fixed-interest securities which carry a rating of BBB- or above (as rated by

Standard & Poor’s) or Baa3 or above (as rated by Moody’s Investors Services Inc.) or which in the opinion of the Portfolio Manager would be rated in the range of such rating and fulfill the minimum credit rating requirements set out by MPFA and broadly diversified, for example in terms of the number of issuers.

The Allianz Choice Stable Growth Fund may also hold cash for ancillary purposes.

(with effect from 15 January 2021) The Allianz Stable Growth Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Stable Growth Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to achieve a stable overall return over the long term by investing in a diversified portfolio of global equities and fixed-interest securities and is expected to invest 50% of its assets in equities and 50% in fixed-interest securities. The fixed income portion will consist of a range of instruments issued in countries around the world. The equity portion of the Allianz Choice Stable Growth Fund will be invested primarily in the Hong Kong, Japan, North American and European markets with a smaller proportion at the discretion of the Portfolio Manager being invested in other Asian countries and emerging markets. The Allianz Choice Stable Growth Fund is a portfolio management fund investing substantially all its assets in (i) other sub-funds of Allianz Global Investors Choice Fund (“Second Layer Underlying APIFs”) and/or (ii) ITCIS (“Underlying ITCIS”) as determined by the Portfolio Manager from time to time to be appropriate to provide the desired investment exposure for the Allianz Choice Stable Growth Fund based on its investment objective and policy. All Second Layer Underlying APIFs are approved as APIFs by the MPFA and authorized by the SFC and all Underlying ITCIS are approved by the MPFA. In granting such approval and authorization neither the MPFA nor the SFC makes any official recommendation or endorsement of any Second Layer Underlying APIF or Underlying ITCIS (as the case may be) nor do they guarantee the commercial merits of any Second Layer Underlying APIF or Underlying ITCIS or its performance. They do not mean any Second Layer Underlying APIF or Underlying ITCIS is suitable for all scheme participants or fund holders nor are they an endorsement of its suitability for any particular scheme participant or fund holder.


62



(b) Balance of investments (continued) (with effect from 15 January 2021) (continued) The Allianz Choice Stable Growth Fund may invest at least: (i) 40% and up to 60% of its assets in global equities; and


Underlying APIFs and/or the Underlying ITCIS.

The Allianz Choice Stable Growth Fund will invest in 5 or more Second Layer Underlying APIFs and/or Underlying ITCIS. It is expected that the Allianz Choice Stable Growth Fund will invest 70% to 100% of its NAV in the Second Layer Underlying APIFs and not more than 30% of its NAV in the Underlying ITCIS. The Second Layer Underlying APIFs and/or the Underlying ITCIS will be actively selected and the extent of the investment of the Allianz Choice Stable Growth Fund in Second Layer Underlying APIFs and/or Underlying ITCIS will be allocated by the Portfolio Manager by reference to their underlying investments. In particular, the Allianz Choice Stable Growth Fund may invest up to 60% of its latest available NAV in the Allianz Choice Global Fixed Income Fund which aims to achieve long-term capital growth and income primarily through investment in a diversified portfolio of global fixed-income securities denominated in multiple currencies. Through the Second Layer Underlying APIFs and/or the Underlying ITCIS, the Allianz Choice Stable Growth Fund will:

(i) invest in equities which are broadly diversified (in terms of industry sectors and/ or


(ii) invest in fixed-interest securities which carry a rating of BBB- or above (as rated by Standard & Poor’s) or Baa3 or above (as rated by Moody’s Investors Services Inc.) or which in the opinion of the Portfolio Manager would be rated in the range of such rating and fulfill the minimum credit rating requirements set out by MPFA and broadly diversified, for example in terms of the number of issuers. Where the Underlying ITCIS in which the Allianz Choice Stable Growth Fund invests tracks a bond index, such bond index will not have a significant portion of the constituent securities that do not satisfy the minimum credit rating requirements set out by MPFA.

The Allianz Choice Stable Growth Fund may also hold cash for ancillary purposes.


63


Allianz Stable Growth Fund (continued) (c) Security lending and repurchase agreements


The Allianz Stable Growth Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Stable Growth Fund and the Second Layer Underlying APIFs currently do not intend to engage in security lending transactions and/or repurchase agreements. (with effect from 15 January 2021)

The Allianz Stable Growth Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Stable Growth Fund and the Second Layer Underlying APIFs currently do not intend to engage in security lending transactions and/or repurchase agreements, although the Underlying ITCIS may engage in security lending transactions and/or repurchase agreements.



None of the Allianz Stable Growth Fund, the Allianz Choice Stable Growth Fund and the Second Layer Underlying APIFs will enter into any financial futures contracts or financial option contracts other than for hedging purpose. (with effect from 15 January 2021) None of the Allianz Stable Growth Fund, the Allianz Choice Stable Growth Fund and the Second Layer Underlying APIFs will enter into any financial futures contracts or financial option contracts other than for hedging purpose, although the Underlying ITCIS may enter into financial derivatives for hedging or non-hedging purpose.

(e) Risks

The level of risk of investing in Allianz Stable Growth Fund is likely to be lower than the Allianz Greater China Fund, the Allianz Oriental Pacific Fund, the Allianz Growth Fund, the Allianz Balanced Fund, the Allianz Asian Fund or the Allianz Hong Kong Fund but higher than the other Constituent Funds. The Allianz Stable Growth Fund is designed for Members who are willing to assume a medium level of risk.

The performance of the Allianz Stable Growth Fund is subject to a number of risks, including the following:

• risk of interest rate changes • currency risk • creditworthiness risk • downgrading risk • company-specific risk • risk of settlement default • counterparty risk


64



(e) Risks (continued) • country and region risk • risk of early termination • concentration risk • general market risk • political and social risks • liquidity risk • custodial risk • emerging market risks • performance risk • constituent fund capital risk • risk of restricted flexibility • inflation risk • risk of changes in underlying conditions • risk of changes to the Trust Deed, to the investment policy and to the other basic aspects of a Constituent Fund

• key personnel risk • valuation risk • Eurozone risk • risk of increased transaction costs arising from unit movements at the APIF level • derivative risk

• equity investment risk and volatility risk • risk associated with specific nature of portfolio management funds

Allianz MPF Conservative Fund (a) Objective

The Allianz MPF Conservative Fund’s investment objective is to achieve a rate of return comparable to the Hong Kong dollar bank savings rate whilst maintaining stability of the principal amount invested.


The Allianz MPF Conservative Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice HK$ Liquidity Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to provide a convenient and easily realisable medium of investment for investors who require a level of income combined with a high degree of capital protection by investing in HK dollar denominated bank deposits and other high quality HK dollar denominated fixed interest and other monetary instruments.


The Allianz MPF Conservative Fund will not enter into any security lending and repurchase agreements. The Allianz Choice HK$ Liquidity Fund currently does not intend to engage in security lending transactions and/or repurchase agreements.


65


Allianz MPF Conservative Fund (continued) (d) Futures and options

The Allianz MPF Conservative Fund will not enter into any financial futures or options contracts. The Allianz Choice HK$ Liquidity Fund may enter into financial futures or option contracts only for hedging purposes and if the applicable requirements imposed by the MPFA and the SFC in relation to the acquisition of such contracts are adhered to.

(e) Risks

The Allianz MPF Conservative Fund is designed as a low-risk investment option which protects investors against investment losses resulting from market fluctuations or volatility, therefore it is more suitable for Members, such as low-income earners or members approaching retirement, who are unable or unwilling to make high risk investments.

Investors should be aware that none of the Allianz MPF Conservative Fund and the Allianz Choice HK$ Liquidity Fund is subject to the supervision of the HKMA, and that subscribing for units in the Allianz MPF Conservative Fund is not the same as placing monies on deposit with a bank or deposit-taking company. The Investment Manager has no obligation to redeem units in the Allianz MPF Conservative Fund at the price at which they were originally issued.

The performance of the Allianz MPF Conservative Fund is subject to a number of risks, including the following:

• risk of interest rate changes • creditworthiness risk • downgrading risk • company-specific risk • risk of settlement default • counterparty risk • country and region risk • risk of early termination • concentration risk • general market risk • political and social risks • liquidity risk • custodial risk • performance risk • constituent fund capital risk • risk of restricted flexibility • inflation risk • risk of changes in underlying conditions • risk of changes to the Trust Deed, to the investment policy and to the other basic aspects of a Constituent Fund

• key personnel risk • valuation risk • risk of increased transaction costs arising from unit movements at the APIF level • derivative risk • risk associated with specific nature of portfolio management funds


66


Allianz Hong Kong Fund (a) Objective

The Allianz Hong Kong Fund’s investment objective is to achieve long term capital growth. (b) Balance of investments

The Allianz Hong Kong Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Hong Kong Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to achieve long term capital growth by investing primarily in Hong Kong equities, including Chinese securities listed in Hong Kong.


The Allianz Hong Kong Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Hong Kong Fund currently does not intend to engage in security lending transactions and/or repurchase agreements.


The Allianz Hong Kong Fund will not enter into any financial futures or options contracts. The Allianz Choice Hong Kong Fund may enter into financial futures or option contracts only for hedging purposes and if the applicable requirements imposed by the MPFA and the SFC in relation to the acquisition of such contracts are adhered to.

(e) Risks

The value of Units in the Allianz Hong Kong Fund is expected to fluctuate more than the value of the Units in the other Constituent Funds. Units in the Allianz Hong Kong Fund are accordingly only suitable for Members who are willing to assume a relatively higher level of risk to achieve potentially higher long term returns.

The performance of the Allianz Hong Kong Fund is subject to a number of risks,

including the following:

• risk of interest rate changes • currency risk • creditworthiness risk • company-specific risk • risk of settlement default • counterparty risk • country and region risk • risk of early termination • concentration risk • general market risk • political and social risks • liquidity risk • custodial risk • performance risk • constituent fund capital risk • risk of restricted flexibility • inflation risk


67


Allianz Hong Kong Fund (continued) (e) Risks (continued)

• risk of changes in underlying conditions • risk of changes to the Trust Deed, to the investment policy and to the other basic aspects of a Constituent Fund

• key personnel risk • valuation risk • risk of increased transaction costs arising from unit movements at the APIF level • derivative risk • equity investment risk and volatility risk • risk associated with specific nature of portfolio management funds

Allianz Asian Fund (a) Objective

The Allianz Asian Fund’s investment objective is to achieve long-term capital growth. (b) Balance of investments

The Allianz Asian Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Asian Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to achieve long term capital growth by investing primarily in Asian equities, principally in equity markets of Asia. The Allianz Choice Asian Fund will invest at least 70% of its assets in equities of companies that are incorporated in Asian countries or that derive a predominant portion of their revenue and/or profits from Asian countries which may include but are not limited to Hong Kong, Singapore, South Korea, Taiwan, India, Philippines, Thailand and Malaysia, but not including Japan. The Allianz Choice Asian Fund will invest up to 30% of its assets in other markets or securities other than those mentioned above such as cash and/or money market instruments and/or short term fixed-interest securities which satisfy the minimum credit rating requirements set out by MPFA. The equities invested by the Allianz Choice Asian Fund are broadly diversified (in terms of industry sectors and/or companies of a particular capital size). The Allianz Choice Asian Fund targets to mainly invest in equities that are listed and traded on stock exchanges approved by MPFA.


The Allianz Asian Fund will not enter into any security lending and/or repurchase agreements. The Allianz Choice Asian Fund currently does not intend to engage in security lending transactions and/or repurchase agreements.


The Allianz Asian Fund will not enter into any financial futures or options contracts. The Allianz Choice Asian Fund may enter into financial futures or option contracts only for hedging purposes and if the applicable requirements imposed by the MPFA and the SFC in relation to the acquisition of such contracts are adhered to.


68


Allianz Asian Fund (continued) (e) Risks

The value of Units in the Allianz Asian Fund is expected to fluctuate more than the value of the Units in the other Constituent Funds except the Allianz Hong Kong Fund. Units in the Allianz Asian Fund are accordingly only suitable for Members who are willing to assume a relatively higher level of risk to achieve potentially higher long term returns.

The performance of the Allianz Asian Fund is subject to a number of risks, including the following: • risk of interest rate changes • currency risk • creditworthiness risk • company-specific risk • risk of settlement default • counterparty risk • country and region risk • risk of early termination • concentration risk • general market risk • political and social risks • liquidity risk • custodial risk • emerging market risks • performance risk • constituent fund capital risk • risk of restricted flexibility • inflation risk • risk of changes in underlying conditions • risk of changes to the Trust Deed, to the investment policy and to the other basic aspects of a Constituent Fund


Allianz Flexi Balanced Fund (a) Objective

The Allianz Flexi Balanced Fund’s investment objective is to achieve a performance target not related to an index, and long term capital preservation with minimized short term volatility.


69


Allianz Flexi Balanced Fund (continued)


The Allianz Flexi Balanced Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Flexi Balanced Fund, a sub-fund of Allianz Global Investors Choice Fund, which aims to achieve a performance target not related to an index, and long term capital preservation with minimized short term volatility by investing in a diversified portfolio of global equities and fixed-interest securities. The Allianz Choice Flexi Balanced Fund is expected to adopt a dynamic asset allocation strategy in order to achieve optimal return under evolving market conditions. In strong equity markets, the Allianz Choice Flexi Balanced Fund may invest up to 50% of its assets in equities. In weaker equity market conditions, the portfolio of the Allianz Choice Flexi Balanced Fund may be rebalanced to preserve capital through the holding of fixed-interest securities which satisfy the minimum credit rating requirements set out by the MPFA. If market conditions so require, the Allianz Choice Flexi Balanced Fund may hold no equities and invest fully in fixed-interest securities and cash only. Fixed-interest securities and cash are extensively used as a buffer when the general equity outlook seems uninspiring, but they may be reduced when it is deemed appropriate. It is expected that under normal circumstances, at least 75% of the assets of the Allianz Choice Flexi Balanced Fund will be invested in fixed-interest securities and cash in order to minimize short term volatility. Up to 100% of the assets of the Allianz Choice Flexi Balanced Fund may be held in deposits, cash and/or invested directly in money market instruments and/or (up to 10% of its assets) in money market funds on a temporary basis for liquidity management and/or defensive purpose and/or any other exceptional circumstances (e.g. market crash or major crisis), and if the Portfolio Manager considers it in the best interest of the Allianz Choice Flexi Balanced Fund.


The Allianz Flexi Balanced Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Flexi Balanced Fund currently does not intend to engage in security lending transactions and/or repurchase agreements.


The Allianz Flexi Balanced Fund will not enter into any financial futures or options contracts. The Allianz Choice Flexi Balanced Fund may enter into financial futures or option contracts only for hedging purposes and if the applicable requirements imposed by the MPFA and the SFC in relation to the acquisition of such contracts are adhered to.

(e) Risks

The level of risk of investing in the Allianz Flexi Balanced Fund is likely to be higher than that of investing in the Allianz MPF Conservative Fund and the Allianz RMB Money Market Fund, but lower than that of investing in the other Constituent Funds. The Allianz Flexi Balanced Fund is designed for Members who are willing to assume a relatively low level of risk.


70


Allianz Flexi Balanced Fund (continued) (e) Risks (continued)

The performance of the Allianz Flexi Balanced Fund is subject to a number of risks, including the following:




71


Allianz Greater China Fund (a) Objective

The Allianz Greater China Fund’s investment objective is to achieve long-term capital growth.


The Allianz Greater China Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Greater China Fund, a sub-fund of Allianz Global Investors Choice Fund. The Allianz Choice Greater China Fund aims to achieve long-term capital growth by investing primarily in the equity markets of:

(i) Hong Kong and Taiwan; or

(ii) companies that derive a predominant portion of their revenue and/or profits from

Greater China, which includes Mainland China, Hong Kong, Macau and Taiwan.

The Allianz Choice Greater China Fund will invest at least 70% of its assets (and normally up to 100%) in (i) and (ii) as stated above with the remaining invested in short term fixed-interest securities and/or cash for cash management purpose.


The Allianz Greater China Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Greater China Fund currently does not intend to engage in security lending transactions and/or repurchase agreements.


The Allianz Greater China Fund will not enter into any financial futures or options contracts. The Allianz Choice Greater China Fund may enter into financial futures or option contracts only for hedging purposes and if the applicable requirements imposed by the MPFA and the SFC in relation to the acquisition of such contracts are adhered to.

(e) Risks

The value of Units in the Allianz Greater China Fund is expected to fluctuate more than the value of the Units in the other Constituent Funds except the Allianz Hong Kong Fund. Units in the Allianz Greater China Fund are accordingly only suitable for Members who are willing to assume a relatively higher level of risk to achieve potentially higher long term returns.

The performance of the Allianz Greater China Fund is subject to a number of risks, including the following: • risk of interest rate changes • currency risk • creditworthiness risk • company-specific risk • risk of settlement default • counterparty risk


72


Allianz Greater China Fund (continued)

(e) Risks (continued) • country and region risk • risk of early termination • concentration risk • general market risk • political and social risks • liquidity risk • custodial risk • emerging market risks • performance risk • constituent fund capital risk • risk of restricted flexibility • inflation risk • risk of changes in underlying conditions • risk of changes to the Trust Deed, to the investment policy and to the other basic aspects of a Constituent Fund


Allianz Oriental Pacific Fund (a) Objective

The Allianz Oriental Pacific Fund’s investment objective is to achieve long-term capital appreciation and income.


The Allianz Oriental Pacific Fund will achieve the above objective by investing all its assets in an APIF, Allianz Choice Oriental Fund, a sub-fund of Allianz Global Investors Choice Fund. The Allianz Choice Oriental Fund aims to provide investors with long-term capital appreciation and income by investing in debt securities, convertible debt securities and equities of companies in the Asia Pacific region including, but not limited to, Japan, Korea, China, Australia, Taiwan and Hong Kong. To achieve its investment objective, the Allianz Choice Oriental Fund will invest approximately between:

(i) 75% and 100% of its assets in Asia Pacific equities and the rest in debt securities

or convertible debt securities in strong equity market conditions;

(ii) 65% and 75% of its assets in Asia Pacific equities and the rest in debt securities and convertible debt securities in normal equity market conditions; and

(iii) 50% and 75% in Asia Pacific equities and the rest in debt securities or convertible

debt securities in weak equity market conditions.


73


Allianz Oriental Pacific Fund (continued) (b) Balance of investments (continued)

Up to 10% of the Allianz Choice Oriental Fund’s assets may be invested in non-Asia Pacific debt securities and convertible debt securities, such as US treasury inflation-protected securities and treasury bonds.


The Allianz Oriental Pacific Fund will not enter into any security lending and repurchase agreements. The Allianz Choice Oriental Fund currently does not intend to engage in security lending transactions and/or repurchase agreements.


The Allianz Oriental Pacific Fund will not enter into any financial futures or options contracts. The Allianz Choice Oriental Fund may enter into financial futures or option contracts only for hedging purposes and if the applicable requirements imposed by the MPFA and the SFC in relation to the acquisition of such contracts are adhered to.

(e) Risks

The value of Units in the Allianz Oriental Pacific Fund is expected to fluctuate more than the value of the Units in the other Constituent Funds except the Allianz Hong Kong Fund, Allianz Greater China Fund and Allianz Asian Fund. Units in the Allianz Oriental Pacific Fund are accordingly only suitable for Members who are willing to assume a relatively higher level of risk to achieve potentially higher long term returns.

The performance of the Allianz Oriental Pacific Fund is subject to a number of risks, including the following:

• risk of interest rate changes • currency risk • creditworthiness risk • downgrading risk • company-specific risk • risk of settlement default • counterparty risk • country and region risk • risk of early termination • concentration risk • general market risk • political and social risks • liquidity risk • custodial risk • emerging market risks • performance risk • constituent fund capital risk • risk of restricted flexibility • inflation risk • risk of changes in underlying conditions


74


Allianz Oriental Pacific Fund (continued)

(e) Risks (continued) • risk of changes to the Trust Deed, to the investment policy and to the other basic aspects of a Constituent Fund


Allianz RMB Money Market Fund (a) Objective

The Allianz RMB Money Market Fund’s investment objective is to seek income and capital gains over the long run.


The Allianz RMB Money Market Fund will achieve the above objective by investing:

(i) 60% – 70% of its assets in an APIF, Allianz Choice RMB Money Market Fund, a

sub-fund of Allianz Global Investors Choice Fund; and

(ii) 30% – 40% of its assets in another APIF, Allianz Choice HK$ Cash Fund, a sub-fund of Allianz Global Investors Choice Fund.

*Investors should note that the above ranges of asset allocations are for indication only and may have short term variation due to changing market conditions and fluctuation.

The APIF, Allianz Choice RMB Money Market Fund, aims to provide a convenient and realizable medium of investment and seek income and capital gains over the long run by investing at least 70% of its assets in RMB denominated certificates of deposit and bank deposits and the APIF can invest up to:

(i) 30% of its assets in RMB denominated fixed interest securities (e.g. bond/ notes);

and

(ii) 10% of its assets in fixed interest securities, bank deposits and other monetary instruments such as short term bills, commercial paper and treasury bills in non-RMB denominated currencies such as HK$ and USD.

The APIF invests:

(i) at least 90% of its assets in investments denominated and settled in RMB, issued in

Hong Kong or outside the PRC; and

(ii) up to 10% of its assets in investments denominated and settled in currencies other than RMB for various purposes including but not limited to diversification, market liquidity and fund liquidity purposes.


75


Allianz RMB Money Market Fund (continued) (b) Balance of investments (continued)

The APIF, Allianz Choice HK$ Cash Fund, aims to provide a convenient and easily realisable medium of investment for investors who require an income stream combined with a high degree of capital protection by investing in HK dollar denominated bank deposits and other high quality HK$ denominated fixed interest and other monetary instruments.

Both APIFs, Allianz Choice RMB Money Market Fund and Allianz Choice HK$ Cash Fund, must respectively maintain a portfolio with weighted average maturity not exceeding 60 days and a weighted average life not exceeding 120 days and must not purchase instruments with a remaining maturity of more than 397 days, or 2 years in the case of government and other public securities. Neither the Constituent Fund nor the APIFs will invest in any securities issued within the People’s Republic of China through the Qualified Foreign Institutional Investor (QFII) program.


The Allianz RMB Money Market Fund will not enter into any security lending and repurchase agreements. The Allianz Choice RMB Money Market Fund and Allianz Choice HK$ Cash Fund currently do not intend to engage in security lending transactions and/or repurchase agreements.


The Allianz RMB Money Market Fund will not enter into any financial futures or options contracts. The Allianz Choice RMB Money Market Fund and Allianz Choice HK$ Cash Fund may enter into financial futures or option contracts only for hedging purposes and if the applicable requirements imposed by the MPFA and the SFC in relation to the acquisition of such contracts are adhered to.

(e) Risks

Investors should be aware that none of the Allianz RMB Money Market Fund, the Allianz Choice RMB Money Market Fund and the Allianz Choice HK$ Cash Fund is subject to the supervision of the HKMA, and that subscribing for units in the Allianz RMB Money Market Fund is not the same as placing monies on deposit with a bank or deposit-taking company. The Investment Manager has no obligation to redeem units in the Allianz RMB Money Market Fund at the price at which they were originally issued.

The performance of the Allianz RMB Money Market Fund is subject to a number of risks, including the following:

• risk of interest rate changes • currency risk • creditworthiness risk • downgrading risk • company-specific risk • risk of settlement default • counterparty risk • country and region risk


76


Allianz RMB Money Market Fund (continued) (e) Risks (continued)

• risk of early termination • concentration risk • general market risk • political and social risks • liquidity risk • custodial risk • emerging market risks • performance risk • constituent fund capital risk • risk of restricted flexibility • inflation risk • risk of changes in underlying conditions • risk of changes to the Trust Deed, to the investment policy and to the other basic aspects of a Constituent Fund

• key personnel risk • valuation risk • risk of increased transaction costs arising from unit movements at the APIF level • derivative risk • risk associated with specific nature of portfolio management funds • risks relating to Allianz RMB Money Market Fund and its underlying APIF, Allianz Choice RMB Money Market Fund

Allianz MPF Age 65 Plus Fund (a) Objective

The Allianz MPF Age 65 Plus Fund’s investment objective is to provide stable growth for the retirement savings to Members by investing in a globally diversified manner.


The Allianz MPF Age 65 Plus Fund is actively managed with an aim to achieve risk adjusted investment returns at least similar to that of the Reference Portfolio over the long run.

In an actively managed portfolio, the Portfolio Manager makes investment decisions on what securities to buy, hold and sell with the objective of outperforming the Reference Portfolio. In contrast to passive management, an active Portfolio Manager does not aim to replicate the components of the underlying benchmark indices in the Reference Portfolio, but aims to exploit inefficiencies in the market.

In order to achieve the investment objective, the Allianz MPF Age 65 Plus Fund will be structured as a portfolio management fund investing in 2 or more APIF(s) of the Allianz Global Investors Choice Fund and/ or index-tracking collective investment scheme(s) (“ITCIS(s)”) as allowed under the MPF Regulation, and the APIF(s); and/ or ITCIS(s) will be selected from those available in the markets that allow the Allianz MPF Age 65 Plus Fund to achieve the stated investment objective.


77


Allianz MPF Age 65 Plus Fund (continued)

(b) Balance of investments (continued) Subject to the prescribed asset allocation as set out below, the fund allocation percentage is subject to the Investment Manager’s discretion.

Through the underlying investment, the Allianz MPF Age 65 Plus Fund will hold 20% of its net assets in higher risk assets, with the remainder investing in lower risk assets. The asset allocation to higher risk assets may vary between 15% and 25% due to differing price movements of various equity and bond markets.

There is no prescribed allocation for investments in any specific countries or currencies.

The Allianz MPF Age 65 Plus Fund will maintain an effective currency exposure to Hong Kong dollars of not less than 30% by investing in the underlying APIF(s); and/ or ITCIS(s) and when appropriate, by carrying out currency hedging operations at the level of the Allianz MPF Age 65 Plus Fund.


The Allianz MPF Age 65 Plus Fund will not enter into any security lending and repurchase agreements.


78


Allianz MPF Age 65 Plus Fund (continued) (d) Futures and options

The Allianz MPF Age 65 Plus Fund will enter into financial futures and options contracts for purposes of hedging only.

(e) Risks

The risk level of the Allianz MPF Age 65 Plus Fund is likely to be lower than that of the Allianz MPF Core Accumulation Fund.

Reference is made to the Reference Portfolio in relation to the performance and asset allocation of the Allianz MPF Age 65 Plus Fund. A MPF industry developed Reference Portfolio is adopted for the purpose of the default investment strategy (“DIS”) to provide reference for performance and asset allocation of the Allianz MPF Age 65 Plus Fund. The return of the Allianz MPF Age 65 Plus Fund over the long term is expected to be at least similar to the return of the Reference Portfolio of the Allianz MPF Age 65 Plus Fund.

The Allianz MPF Age 65 Plus Fund is designed for Members who are willing to assume a relatively low level of risk.

The performance of the Allianz MPF Age 65 Plus Fund is subject to a number of risks, including the following:


• key personnel risk • valuation risk • Eurozone risk • risk of increased transaction costs arising from unit movements at the APIF level • derivative risk • equity investment risk and volatility risk


79


Allianz MPF Age 65 Plus Fund (continued)

(e) Risks (continued)

• risk associated with specific nature of portfolio management funds • risks associated with ITCIS • risks associated with investing in the DIS funds

Allianz MPF Core Accumulation Fund (a) Objective

The Allianz MPF Core Accumulation Fund’s investment objective is to provide capital growth to Members by investing in a globally diversified manner.


The Allianz MPF Core Accumulation Fund is actively managed with an aim to achieve risk adjusted investment returns at least similar to that of the Reference Portfolio over the long run.

In an actively managed portfolio, the Portfolio Manager makes investment decisions on what securities to buy, hold and sell with the objective of outperforming the Reference Portfolio. In contrast to passive management, an active Portfolio Manager does not aim to replicate the components of the underlying benchmark indices in the Reference Portfolio, but aims to exploit inefficiencies in the market.

In order to achieve the investment objective, the Allianz MPF Core Accumulation Fund will be structured as a portfolio management fund investing in 2 or more APIF(s) of the Allianz Global Investors Choice Fund and/or ITCIS(s) as allowed under the MPF Regulation, and the APIF(s); and/or ITCIS(s) will be selected from those available in the markets that allow the Allianz MPF Core Accumulation Fund to achieve the stated investment objective.


80


Allianz MPF Core Accumulation Fund (continued)

(b) Balance of investments (continued)

Subject to the prescribed asset allocation as set out below, the fund allocation percentage is subject to the Investment Manager’s discretion.

Through the underlying investment, the Allianz MPF Core Accumulation Fund will hold 60% of its net assets in higher risk assets, with the remainder investing in lower risk assets. The asset allocation to higher risk assets may vary between 55% and 65% due to differing price movements of various equity and bond markets.

There is no prescribed allocation for investments in any specific countries or currencies.

The Allianz MPF Core Accumulation Fund will maintain an effective currency exposure to Hong Kong dollars of not less than 30% by investing in the underlying APIF(s) and/or ITCIS(s) and when appropriate, by carrying out currency hedging operations, at the level of the Allianz MPF Core Accumulation Fund.


The Allianz MPF Core Accumulation Fund will not enter into any security lending and repurchase agreements.


The Allianz MPF Core Accumulation Fund will enter into financial futures and options contracts for purposes of hedging only.


81


Allianz MPF Core Accumulation Fund (continued) (e) Risks

The risk level of the Allianz MPF Core Accumulation Fund is likely to be higher than that of the Allianz MPF Age 65 Plus Fund.

Reference is made to the Reference Portfolio in relation to the performance and asset allocation of the Allianz MPF Core Accumulation Fund. A MPF industry developed Reference Portfolio is adopted for the purpose of the default investment strategy (“DIS”) to provide reference for performance and asset allocation of the Allianz MPF Core Accumulation Fund. The return of the Allianz MPF Core Accumulation Fund over the long term is expected to be at least similar to the return of the Reference Portfolio of the Allianz MPF Core Accumulation Fund.

The Allianz MPF Core Accumulation Fund is designed for Members who are willing to assume an above average level of risk.

The performance of the Allianz MPF Core Accumulation Fund is subject to a number of risks, including the following:


• key personnel risk • valuation risk • Eurozone risk • risk of increased transaction costs arising from unit movements at the APIF level • derivative risk • equity investment risk and volatility risk • risk associated with specific nature of portfolio management funds • risks associated with ITCIS • risks associated with investing in the DIS funds


82

Investment report (continued) Commentary by the Trustee The Trustee of the Scheme confirmed that: (a) Based on the information received from the Investment Manager of the Scheme during

the year, to the best of the knowledge and belief of the Trustee, the investment objectives and policies for each constituent fund of the Scheme were complied with; and

(b) Contents of the Investment Manager’s Report contained thereunder are acknowledged and endorsed by the Trustee.

Set out below are the information for assisting scheme members to review performance of their MPF investments. Remarks: The performance was calculated by using the last dealing fund price as of 30 June 2021, the last dealing date of the financial year.

A. Trustee’s commentary on analysis of the investments held by the Scheme and supporting information of its commentary

Annualized return (in terms of %)

Last 1 year Last 5 years Last 10 years Since launch

Allianz Balanced Fund (Launch date)

- Class A (7 February 2001) - Class B (2 February 2001)

- Class T (11 December 2000)

26.22 26.47 26.51

9.28 9.73 9.39

5.23 5.40 5.16

5.40 5.52 5.55

Performance target

- Class A - Class B - Class T

23.99 23.99 23.99

10.14 10.14 10.14

6.67 6.67 6.67

6.84 6.84 6.68

Deviation from the performance target

- Class A

- Class B - Class T

2.23 2.48 2.52

(0.86) (0.41) (0.75)

(1.44) (1.27) (1.51)

(1.44) (1.32) (1.13)

Trustee’s commentary

According to the Investment Manager: • The fund outperformed the benchmark over the one year period but underperformed the benchmark over the

five and ten year periods.

• Over the past financial year ended 30 June 2021, both equity and fixed income investments outperformed

their respective benchmarks. Within fixed income, contributions came from the overweight in USD bonds and

security selection in credit products as credit spreads tightened due to the abundant liquidity condition and

corporate bond purchase programs.

• Within equities, stock selection in HK/China contributed the most, followed by Korea, Taiwan and Japan. In

terms of asset allocation, the overweight in equities and underweight in fixed income also contributed

positively.

• The Investment Manager expects regional economies will continue to recovery over the second half of 2021,

and governments and central banks will continue adopting supportive fiscal and monetary policies. Key risk

factors are the Delta variant and low vaccination rate in some emerging markets, as well as the worsening of

US-China relationship.

• Performance target = 24% FTSE MPF HK, 9% FTSE AW Asia Pacific ex Japan, HK & China, 9% FTSE W

Japan, 15% FTSE AW North America, 14% FTSE AW Europe, 25% FTSE WGBI (25% HKD hedged), 5%

MPFA Prescribed Savings Rate

* The since launch performance target return is calculated based on the first full month of each share class inception date to 30 June 2021.


83

Investment report (continued) Commentary by the Trustee (continued)

A. Trustee’s commentary on analysis of the investments held by the Scheme and supporting information of its commentary (continued)



Allianz Capital Stable Fund (Launch date)

- Class A (7 February 2001) - Class B (2 February 2001) - Class T (11 December 2000)

11.82 12.04 12.08

4.67 4.89 4.85

2.82 3.02 3.00

3.98 4.13 4.24

Performance target - Class A

- Class B - Class T

10.02 10.02 10.02

5.35 5.35 5.35

3.97 3.97 3.97

5.24 5.24 5.17



1.80 2.02 2.06

(0.68) (0.46) (0.50)

(1.15) (0.95) (0.97)

(1.26) (1.11) (0.93)

Trustee’s commentary According to the Investment Manager:

• The fund outperformed the benchmark over the one year period but underperformed the benchmark over the





corporate bond purchase programs.



positively.










84





Allianz Growth Fund (Launch date)

- Class A (7 February 2001)

- Class B (2 February 2001) - Class T (8 December 2000)

33.71 33.97 34.01

11.49 11.78 11.80

6.01 6.24 6.23

5.90 6.04 6.10

Performance target


31.57

31.57

31.57

12.47

12.47

12.47

7.90

7.90

7.90

7.45

7.45

7.02


- Class A 2.14 (0.98) (1.89) (1.55) - Class B 2.40 (0.69) (1.66) (1.41) - Class T 2.44 (0.67) (1.67) (0.92)

Trustee’s commentary

According to the Investment Manager:



• Over the past financial year ended 30 June 2021, performance was helped primarily by strong stock selection

in both HK/China and Asia Pacific region, but the outperformance was slightly offset by Europe equity.

• From asset allocation perspective, overweight in North American equity and underweight in fixed income

attributed positively to performance but underweight in Japan equity detracted to some extent.

• Stock selection in HK/China was the major contributors to performance. For Asia Pacific ex HK/China, stock

selection was especially positive in North Asian markets such as Japan, Korea and Taiwan but was offset by

Indian equities.










85





Allianz Stable Growth Fund (Launch date)

- Class A (7 February 2001)

- Class B (2 February 2001) - Class T (8 December 2000)

18.84 19.07 19.11

7.08 7.28 7.35

4.02 4.22 4.24

4.78 4.95 5.07

Performance target


16.85 16.85 16.85

7.81 7.81 7.81

5.41 5.41 5.41

6.20 6.20 6.08


- Class A - Class B

- Class T

1.99 2.22 2.26

(0.73) (0.53) (0.46)

(1.39) (1.19) (1.17)

(1.42) (1.25) (1.01)







corporate bond purchase programs



positively.





• Performance target = 17% FTSE MPF HK, 6.5% FTSE AW Asia Pacific ex Japan, HK & China, 6.5% FTSE

W Japan, 10% FTSE AW North America, 10% FTSE AW Europe, 45% FTSE WGBI (25% HKD hedged), 5%




86





Allianz MPF Conservative Fund (Launch date)

- Class A (7 February 2001) - Class B (2 February 2001) - Class T (11 December 2000)

0.02 0.02 0.02

0.37 0.37 0.39

0.20 0.20 0.21

0.57 0.57 0.66

Performance target - Class A - Class B

- Class T

0.00 0.00 0.00

0.03 0.03 0.03

0.02 0.02 0.02

0.37 0.37 0.40



0.02

0.02

0.02

0.34

0.34

0.36

0.18

0.18

0.19

0.20

0.20

0.26


• The fund outperformed the benchmark over the one, five and ten year periods.

• Over the past financial year ended 30 June 2021, the fund’s outperformance was helped by active comparison of HKD money market products to achieve the best return.

• Performance target = 100% MPFA Prescribed Savings Rate


87





Allianz Hong Kong Fund (Launch date)

- Class A (31 August 2004)

- Class B (4 August 2004) - Class T (4 August 2004)

35.43 35.70 35.74

11.86 12.11 12.14

5.76 5.93 6.00

9.83 10.37 10.49

Performance target


27.83 27.83 27.83

12.60 12.60 12.60

6.61 6.61 6.61

9.10 9.43 9.43


- Class A - Class B

- Class T

7.60 7.87 7.91

(0.74) (0.49) (0.46)

(0.85) (0.68) (0.61)

0.73 0.94 1.06


• The fund outperformed the benchmark over the one year period but underperformed over the five and ten year periods.

• Over the past financial year ended 30 June 2021, the portfolio outperformed with stock selection in financials and healthcare sectors being the key contributor to performance; while stock selection in technology detracted the most.

• At an individual stock level, our holding in a leading domestic automobile marker listed in China A-Shares, was the top contributor. An announcement of an expanded smart car partnership with Huawei triggered a sharp rally. On the other hand, our position in a China real estate property developer detracted from performance, given the tightening regulations around property developers to avoid systematic risks and control property prices in China.

• Looking ahead, our base case is that the intensity and tone of the recent regulatory tightening in China will be lessened. A key point is that China’s domestic capital markets must be developed further if long-term industrial policy goals are to be met. And if domestic stock markets are destabilized, then fund raising for all sectors is threatened. In this context, we see recent events as a speed bump which may delay, but not ultimately derail, China’s goal of liberalization of its financial markets.

• Performance target = 100% FTSE MPF Hong Kong


88





Allianz Asian Fund (Launch date)

- Class A (31 August 2004)

- Class B (4 August 2004) - Class T (4 August 2004)

44.04 44.33 44.37

15.99 16.36 16.31

8.08 8.34 8.33

10.50 11.02 11.10

Performance target


40.31 40.31 40.31

14.85 14.85 14.85

7.30 7.30 7.30

10.45 10.78 10.78


- Class A - Class B

- Class T

3.73

4.02

4.06

1.14

1.51

1.46

0.78

1.04

1.03

0.05

0.24

0.32


• The fund outperformed the benchmark over the one, five and ten year periods.

• Over the past financial year ended 30 June 2021, the portfolio outperformed with stock selection at both a

country and sector level positively contributing to performance. At a country level stock selection was

especially positive in North Asian markets such as China/Hong Kong, Korea, and Taiwan. At a sector level,

stock selection was strong in the communication services and health care sectors.

• At an individual stock level, our holding in a Korean internet platform service provider was the leading

contributor. The company has seen strong revenue growth with the impact of the pandemic being to drive

more business online. On the other hand, our holding in one of China’s leading online education providers

detracted as a tougher regulatory environment weighed on the growth outlook.

• As we enter the second half of 2021, the outlook for the Asian equity markets remains dependent primarily on

the outlook for China and the successful containment of COVID-19. Governments and central banks have

adopted supportive fiscal and monetary policies. Our base case is to remain constructive on the longer-term

outlook for the region. Key risk factors are the potential for further waves of COVID-19, as well as the

worsening of US-China relations.

• Performance target = 100% MSCI AC Asia ex Japan


89





Allianz Flexi Balanced Fund (Launch date)

- Class A (31 August 2004) - Class B (9 August 2004)

- Class T (9 August 2004)

14.40 14.63 14.66

4.52 4.67 4.70

3.35 3.53 3.58

3.56 3.76 3.85

Performance target All Classes

2.17

3.00

3.19

1.88


- Class A - Class B

- Class T

12.23 12.46 12.49

1.52 1.67 1.70

0.16 0.34 0.39

1.68 1.88 1.97


• The fund delivered positive return and outperformed the reference benchmark over the one, five and ten year periods.

• Over the past financial year ended 30 June 2021, the portfolio delivered positive return. Both fixed income and equity attributed positively to the overall fund performance with equities being the major contributor.

• Within equities, all regions delivered positive return as the roll-out of COVID-19 vaccines boosted the outlook for a global economic recovery from the pandemic. HK/China was the key outperformer followed by US.

• Fixed income delivered strong performance, helped by strong sentiment in the credit market. • At the individual stock level, a Hong Kong jewellery group made the largest contribution, helped by strong

recovery in demand and better than expected earnings. On the other hand, a Chinese insurance company detracted the most on concerns over declining expectation in sales momentum.

• Performance target = 5 Years Average of Hong Kong Consumer Price Index * The since launch performance target return is calculated based on the first full month of each share class

inception date to 30 June 2021.


90





Allianz Greater China Fund (Launch date)

- Class A (1 November 2011)

- Class B (11 October 2011) - Class T (3 October 2011)

39.76 40.03 40.08

15.45 15.69 15.65

N/A N/A N/A

9.73 11.83 11.40

Performance target


36.86 36.86 36.86

16.08 16.08 16.08

N/A N/A N/A

10.59 12.40 12.12


- Class A - Class B

- Class T

2.90

3.17

3.22

(0.63)

(0.39)

(0.43)

N/A

N/A

N/A

(0.86)

(0.57)

(0.72)


• The fund outperformed the benchmark over the one year period but underperformed over the five year period.

• Over the past financial year ended 30 June 2021, the portfolio outperformed with stock selection in financials and healthcare sectors being the key contributor to performance; while stock selection in technology detracted the most.

• At an individual stock level, our holding in a Chinese pharmaceutical research and development service provider, was the top contributor. We believe these R&D platforms are well positioned to benefit from the rising demand for innovative drugs and biotech in China. On the other hand, our position in a Chinese online education provider detracted performance. Share price was dragged by concerns over policy tightening over the after school tutoring industry.

• Looking ahead, our base case is that the intensity and tone of the recent regulatory tightening in China will be lessened. A key point is that China’s domestic capital markets must be developed further if long-term industrial policy goals are to be met. And if domestic stock markets are destabilized, then fund raising for all sectors is threatened. In this context, we see recent events as a speed bump which may delay, but not ultimately derail, China’s goal of liberalization of its financial markets.

• Performance target = 100% FTSE Greater China Index


91





Allianz Oriental Pacific Fund (Launch date)

- Class A (31 October 2011)

- Class B (4 October 2011) - Class T (4 October 2011)

39.54 39.82 39.86

18.69 18.91 18.92

N/A N/A N/A

11.17 12.67 12.68

Performance target


34.98 34.98 34.98

12.96 12.96 12.96

N/A N/A N/A

8.56 9.85 9.85


- Class A - Class B

- Class T

4.56 4.84 4.88

5.73 5.95 5.96

N/A N/A N/A

2.61 2.82 2.83


• The fund outperformed the benchmark over the one and five year periods.

• Over the past financial year ended 30 June 2021, the portfolio outperformed with stock selection in New Zealand and Japan being the key contributor to performance.

• At an individual stock level, our holding in a leading New Zealand based company providing freight, warehousing and logistics services was the leading contributor. We believe this is an exceptionally well-managed business with a highly competitive, service and customer-focused culture. On the other hand, our position in a China consumer staples company that was impacted by the imposition of new regulations in the industry weighed on returns.

• As we enter the second half of 2021, the outlook for the Asian equity markets remains dependent primarily on the outlook for China and the successful containment of COVID-19. Governments and central banks have adopted supportive fiscal and monetary policies. Our base case is to remain constructive on the longer-term outlook for the region. Key risk factors are the potential for further waves of COVID-19, as well as the worsening of US-China relations.

• Performance target = 100% MSCI AC Asia Pacific


92





Allianz RMB Money Market Fund (Launch date)

- Class A (7 October 2013) - Class B (4 October 2013) - Class T (4 October 2013)

6.49 6.48 6.53

1.40 1.40 1.41

N/A N/A N/A

0.51 0.51 0.54

Performance target - Class A - Class B

- Class T

6.78 6.78 6.78

0.65 0.65 0.65

N/A N/A N/A

(0.35) (0.35) (0.35)



(0.29) (0.30) (0.25)

0.75 0.75 0.76

N/A N/A N/A

0.86 0.86 0.89


• The fund outperformed the benchmark over the five year period but underperformed over the one year period.

• Over the past financial year ended 30 June 2021, the fund’s underperformance was mainly due to the lower CNH exposure compared to the benchmark. However, this was partially offset by positive returns coming from active comparison of RMB and HKD money market products to achieve the best return.

• Performance target = 70% Money Market Hong Kong RMB Savings Deposit, 30% MPFA Prescribed Savings Rate


93





Allianz MPF Age 65 Plus Fund (Launch date)

- Class A (1 April 2017)

- Class B (1 April 2017) - Class T (1 April 2017)

5.85 5.85 5.85

N/A N/A N/A

N/A N/A N/A

4.18 4.66 4.66

Performance target

- All Classes 4.67

N/A

N/A

4.58



1.18

1.18

1.18

N/A

N/A

N/A

N/A

N/A

N/A

(0.40)

0.08

0.08


• The fund outperformed the benchmark over the one year period.

• Over the past financial year ended 30 June 2021, the outperformance was mainly driven by fixed income

investments as credit spreads tightened due to the abundant liquidity condition and corporate purchase

program.

• Equity investments also outperformed the benchmark, mainly contributed by stock selection in HK/China,

followed by Korea, Taiwan and Japan. Outperformance was slightly offset by both European and US equity

investments.

• Performance target = 20% FTSE MPF All-World, 77% FTSE MPF WGBI (HKD hedged), 3% MPFA Prescribed

Savings Rate


94





Allianz MPF Core Accumulation Fund (Launch date)

- Class A (1 April 2017) - Class B (1 April 2017)

- Class T (1 April 2017)

21.34 21.35 21.35

N/A N/A N/A

N/A N/A N/A

8.59 9.20 9.20

Performance target - All Classes 20.56

N/A

N/A

8.90


- Class A

- Class B - Class T

0.78

0.79

0.79

N/A

N/A

N/A

N/A

N/A

N/A

(0.31)

0.30

0.30


• The fund outperformed the benchmark over the one year period.

• Over the past financial year ended 30 June 2021, the outperformance was mainly driven by stock selection in

HK/China, followed by investments in Korea, Taiwan and Japan. Stock selection in Europe and US equities

have detracted to some extent. Fixed income investments also contributed positively as credit spreads

tightened due to the abundant liquidity condition and corporate purchase program.

• Performance target = 60% FTSE MPF All-World, 37% FTSE MPF WGBI (HKD hedged), 3% MPFA Prescribed

Savings Rate


95

Investment report (continued) Commentary by the Trustee (continued) B. Supporting information in relation to Trustee's assessment framework for deriving its commentary and Trustee's action, if any, to address its concerns raised in its commentary in Section A

Fund performance is monitored by the Trustee on a regular basis and which involves a Board committee composed of members with experience in investment, including Board members. In the event of underperformance of fund(s), the Trustee would routinely (and with the involvement of the Board committee, as appropriate) follow up with relevant sponsor/investment manager to ensure that appropriate action(s) are taken to enhance investment returns. Trustee’s performance monitoring mechanism operates in such a way so that for any of the constituent funds, if its one year performance is below performance target, no immediate action would be required unless the underperformance persists. Trustee also monitors performance of appointed investment managers from perspectives other than fund performance. Other factors such as compliance cultures and experience/investment philosophy of the investment manager for delivering sustainable performance to scheme members on a long-term basis are also taken into account. During the financial year ended 30 June 2021, all constituent funds (including all the available fund classes) outperformed their respective targets (except for the Allianz RMB Money Market Fund, which was mostly due to the fund’s underweight in RMB exposure as compared to the benchmark. The appreciation of RMB might also be relevant). To seek to enhance the performance of Allianz RMB Money Market Fund, the investment manager provided its strategy to the Trustee regarding possible increase in the exposure to RMB bonds.

96

Independent Auditor’s Report To the Trustee of Allianz Global Investors MPF Plan

Report on the Audit of the Financial Statements

Opinion What we have audited

The financial statements of Allianz Global Investors MPF Plan (the “Scheme”) and each of its constituent funds, which are set out on pages 100 to 203, comprise:

• the statement of net assets available for benefits of the Scheme and the statement of net assets of each of its constituent funds as at 30 June 2021;

• the statement of comprehensive income of each of the constituent funds for the year then ended;

• the statement of changes in net assets available for benefits of the Scheme and the statement of changes in net assets attributable to members of each of its constituent funds for the year then ended;

• the statement of cash flows of the Scheme and each of its constituent funds for the year then ended; and

• the notes to the financial statements, which include significant accounting policies and other explanatory information.

Our opinion In our opinion, the financial statements give a true and fair view of the financial position of the Scheme and each of its constituent funds as at 30 June 2021, and of their financial transactions and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”).

Basis for Opinion We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) and with reference to Practice Note 860.1 (Revised), “The Audit of Retirement Schemes” issued by the HKICPA. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Scheme and each of its constituent funds in accordance with the HKICPA’s Code of Ethics for Professional Accountants (the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code.

97


Report on the Audit of the Financial Statements (continued) Other Information

The Trustee is responsible for the other information. The other information comprises all of the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Trustee for the Financial Statements

The Trustee is responsible for the preparation of the financial statements that give a true and fair view in accordance with HKFRSs issued by the HKICPA and for such internal control as the Trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustee is responsible for assessing the Scheme's and each of its constituent funds’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the Scheme and its constituent funds or to cease operations, or has no realistic alternative but to do so. In addition, the Trustee is required to ensure that the financial statements have been properly prepared in accordance with sections 80, 81, 83 and 84 of the Hong Kong Mandatory Provident Fund Schemes (General) Regulation (the “General Regulation”).

98


Report on the Audit of the Financial Statements (continued)

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. We report our opinion solely to you, as a body, in accordance with section 102 of the General Regulation, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, we are required to assess whether the financial statements of the Scheme and each of its constituent funds have been properly prepared, in all material respects, in accordance with sections 80, 81, 83 and 84 of the General Regulation. As part of an audit in accordance with HKSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Scheme's and its constituent funds’ internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustee.

• Conclude on the appropriateness of the Trustee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Scheme’s and its constituent funds’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Scheme and its constituent funds to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Trustee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Independent Auditor's Report To the Trustee of Allianz Global Investors MPF Plan

Report on Matters under the General Regulation

a. In our opinion, the financial statements of the Scheme and each of its constituent funds have been properly prepared, in all material respects, in accordance with sections 80, 81, 83 and 84 of the General Regulation.

b. We have obtained all the information and explanations which, to the best of our knowledge and belief, are necessary for the purpose of our audit.

PricewaterhouseCoopers Certified Public Accountants

Hong Kong, 14 December 2021

1,492,407 589,151 45,643,372 32,246,995

5,498,155 8,495,221

52,633,934 41,331,367


STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - SCHEME

Note 2021

2020 HK$

HK$

Assets Current assets

Investments in constituent funds 8 Amounts receivable on redemption of

units in constituent funds Contributions receivable 6

From employers From members

Cash and cash equivalents

Total assets

Liabilities Current liabilities

Other payables Benefits payable 7 Forfeitures payable

Total liabilities

Net assets available for benefits attributable to members

10,921,311,810 9,082,366,659

14,696,602

9,485,687

23,438,799

34,450,237

17,021,153

34,383,040

13,821,947

16,218,496

10,990,290,311 9,176,904,119

10,937,656,377 9,135,572,752


................................................. ....................................................

Director Director

The accompanying notes are an integral part of these financial statements.

100


101

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - SCHEME Note 2021 2020 HK$ HK$ Income

Net gain on investments in constituent funds 2,357,294,184 380,320,201

Other income 4,497,973 5,786,938 Interest on bank deposits 201 190

──────────── ──────────── Total income 2,361,792,358 386,107,329 Expenses - - ──────────── ──────────── Total net income 2,361,792,358 386,107,329 --------------------- --------------------- Contributions received and receivable 6 From employers

Mandatory 238,506,074 305,196,870 Additional voluntary 132,728,756 155,402,061

From members

Mandatory 230,040,929 294,364,904 Additional voluntary 52,310,728 55,704,619 Tax deductible voluntary 13,238,807 10,657,976

Contribution surcharge received and

receivable 9,160 45,787 Transfers in 165,586,021 63,345,497 ──────────── ──────────── 832,420,475 884,717,714 --------------------- --------------------- Benefits paid and payable 7

Retirement 62,500,270 41,851,683 Early retirement 55,704,217 12,373,309 Death 6,067,529 5,773,093 Permanent departure 76,229,793 62,486,141 Total incapacity 1,195,044 751,808 Small balance 983 2,677 Terminal illness 3,059,145 238,365 Refund of additional voluntary

contributions to leavers

90,579,582

79,191,533 Transfers out 1,041,835,805 945,333,423

Forfeitures 12,072,442 9,691,659

Long service payment 42,884,398 30,582,872

──────────── ────────────

1,392,129,208 1,188,276,563 --------------------- ---------------------



102

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - SCHEME (continued) 2021 2020 HK$ HK$ Increase in net assets available for

benefits attributable to members 1,802,083,625 82,548,480 Net assets available for benefits

attributable to members at the beginning of the year – Members’ accounts 9,135,572,752 9,053,024,272

──────────── ────────────

Net assets available for benefits

attributable to members at the end of the year – Members’ accounts 10,937,656,377 9,135,572,752

════════════ ════════════



103

STATEMENT OF CASH FLOWS - SCHEME 2021 2020 HK$ HK$ Cash flows from operating activities Net income 2,361,792,358 386,107,329 Net change in investments in constituent funds (1,838,945,151) (75,551,683) Net change in amounts receivable on redemption of units in constituent funds (5,210,915) (2,875,677) Net change in other payables 903,256 457,275 Interest income (201) (190) ──────────── ────────────

Cash generated from operations 518,539,347 308,137,054 --------------------- --------------------- Interest received 201 190 --------------------- ---------------------

Net cash generated from operating activities

518,539,548

308,137,244 --------------------- --------------------- Cash flows from financing activities Contributions, transfers in and others received 860,793,800 878,989,043 Benefits, transfers out, forfeitures and others paid (1,381,729,897) (1,184,351,941) ──────────── ────────────

Net cash used in financing activities (520,936,097) (305,362,898) --------------------- --------------------- Net (decrease)/ increase in cash and cash

equivalents (2,396,549) 2,774,346

Cash and cash equivalents at beginning of the year 16,218,496 13,444,150 ──────────── ────────────

Cash and cash equivalents at end of the year 13,821,947 16,218,496 ════════════ ════════════

Analysis of cash and cash equivalents: Cash and bank deposits (representing cash and bank deposits with original maturity of 3 months or less) 13,821,947 16,218,496 ════════════ ════════════


Allianz Capital Stable Fund 2020 2021 2020 HK$ HK$ HK$

514,228,096 741,218 905,982

Assets Current assets Financial assets at fair value through profit or

loss Amounts receivable on fund switching Amounts receivable on sale of investments Cash and cash equivalents

Total assets

8 1081,874,753 923,892,103 529,902,980 676,246 578,430 306,971 583,377 2,036,401 504,033 270,674 145,086 335,267

1,083,405,050 926,652,020 531,049,251


STATEMENT OF NET ASSETS - CONSTITUENT FUNDS

Allianz Balanced Fund Note 2021

HK$

Allianz Growth Fund 2021 2020 HK$ HK$

1,906,686,594 1,548,235,453 3,442,199 2,622,078 2,788,157 2,118,909

Liabilities Current liabilities Amounts payable on purchase of investments 513,897 197,385 163,711

Amounts payable on redemption of units and fund switching 720,912 2,348,149 623,372

Other payables 737,560 665,249 367,668

Total liabilities 1,972,369 3,210,783 1,154,751

653,485 2,664,113 1,199,879

973,378 3,478,193 3,497,213 373,122 1,291,452 1,107,733

1,999,985 7,433,758 5,804,825

Net assets attributable to members 1,081,432,681 923,441,237 529,894,500 514,007,044 1,906,026,487 1,547,388,872


Director Director


104

Allianz MPF Conservative Fund 2021 2020 HK$ HK$

8 994,387,538 898,340,627 1,007,628,939 1,128,116,460 689,117 440,120 2,543,186 8,687,007

1,237,592 1,766,705 7,810,901 8,799,504 414,442 122,085 327,894 226,382

996,728,689 900,669,537 1,018,310,920 1,145,829,353



Total assets


STATEMENT OF NET ASSETS - CONSTITUENT FUNDS (continued)

Allianz Stable Growth Fund Note 2021 2020

HK$ HK$

Allianz Hong Kong Fund 2021 2020 HK$ HK$

1,678,328,236 1,372,304,579 3,600,361 3,062,530 7,678,411 5,180,794

220,946 228,088

1,689,827,954 1,380,775,991

Liabilities Current liabilities Amounts payable on purchase of investments Amounts payable on redemption of units and

fund switching Other payables

Total liabilities

321,956 217,575 2,390,910 6,531,412 3,339,876 2,842,051

1,549,470 1,933,507 7,857,883 10,804,796 7,652,562 5,350,774 681,092 646,114 148,331 804,429 1,139,127 977,138

2,552,518 2,797,196 10,397,124 18,140,637 12,131,565 9,169,963

Net assets attributable to members 994,176,171 897,872,341 1,007,913,796 1,127,688,716 1,677,696,389 1,371,606,028


Director Director


105

Allianz Flexi Balanced Fund 2021 2020 HK$ HK$

Allianz Greater China Fund 2021 2020 HK$ HK$



Total assets

8 1,681,108,553 1,228,549,936 370,429,586 2,157,101 293,809 360,402 2,211,945 2,175,661 1,669,963

311,653 142,726 258,773

1,685,789,252 1231,162,132 372,718,724

Liabilities Current liabilities Amounts payable on purchase of investments 1,352,821 192,054 76,179

Amounts payable on redemption of units and fund switching 2,925,222 2,254,599 1,924,264

Other payables 1,136,753 860,267 257,770




Allianz Asian Fund Note 2021 2020

HK$ HK$

354,835,627 571,986,905 353,802,404 1,385,110 3,758,753 1,338,140

513,941 1,285,888 1,534,399 189,091 85,854 60,367

356,923,769 577,117,400 356,735,310

1,330,384 3,123,037 978,906

548,672 1,895,145 1,878,182 263,286 380,826 250,701

2,142,342 5,399,008 3,107,789

Net assets attributable to members 1,680,374,456 1,227,855,212 370,460,511 354,781,427 571,718,392 353,627,521


64W-~ .................................................... .......................................................

Director Director


iDI



Allianz Oriental Pacific Fund Note 2021 2020

HK$ HK$

Allianz RMB Money Market Fund 2021 2020 HK$ HK$

Allianz MPF Age 65 Plus Fund 2021 2020 HK$ HK$



Total assets

8 314,627,190 184,334,102 100,775,814 2,602,692 1,539,624 1,000,302

562,203 403,252 3,388,683 109,912 46,728 70,752

317,901,997 186,323,706 105,235,551

72,708,494

168,715,582

125,091,857

26,390

1,326,787

3,219,388

183,807

2,219,688

2,591,338 fl') 77.1

Liabilities Current liabilities Amounts payable on purchase of investments 1,253,644 1,538,906 965,177

Amounts payable on redemption of units and fund switching 1,901,454 396,796 3,416,402

Other payables 209,450 128,127 74,561


8,178 906,783 3,421,059

199,270 2,634,190 2,392,133

57,475 173,808 144,570

2A492 3714761 5957762

Net assets attributable to members 314,537,449 184,259,877 100,779,411 72,677,539 168,760,156 125,157,666


16&uLJ xzx6x1 Director Director


107



Allianz MPF Core Accumulation Fund Total Note 2021 2020 2021 2020

HK$ HK$ HK$ HK$ Assets Current assets Financial assets at fair value through profit or

loss 8 517,857,747 381,681,422 10,924,310,417 9,086,121,160 Amounts receivable on fund switching 2,098,768 3,205,921 24,562,885 27,139,765 Amounts receivable on sale of investments 1,310,118 7,161521 33,250,959 35,372,214 Cash and cash equivalents 67,582 623,144 3,229,924 2,369,303

Total assets 521,334,215 392,672,008 10,985,354,185 9,151,002,442

Liabilities Current liabilities Amounts payable on purchase of investments 701,959 6,291,670 17,774,063 25,402,944

Amounts payable on redemption of units and fund switching 2,680,418 4,047,983 39,259,487 36,625,452

Other payables 410,427 329,176 7,008,825 6,607,387

Total liabilities 3,792,804 10,668,829 64,042,375 68,635,783

Net assets attributable to members 517,541,411 382,003,179 10,921,311,810 9,082,366,659


.......................................... I ......... ....................................................... Director Director


108


109

STATEMENT OF COMPREHENSIVE INCOME - CONSTITUENT FUNDS

Allianz Balanced Fund Allianz Capital Stable Fund Allianz Growth Fund

20091 Note 2021 2020 2021 2020 2021 2020

HK$ HK$ HK$ HK$ HK$ HK$

Income

Interest on bank deposits 2 1 1 1 4 3

Other income - - - - - -

Realised gains/(losses) on sale of financial

assets at fair value through profit or loss and

derivative financial instruments 5(c) 57,490,993 32,716,515 24,900,810 14,952,275 122,883,432 61,835,402

Change in unrealised gains/losses in value of

financial assets at fair value through profit or

loss and derivative financial instruments 5(c) 187,392,756 (2,371,519) 39,849,525 4,181,545 397,021,909 (16,024,416)

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Total net income/(loss) 244,883,751 30,344,997 64,750,336 19,133,821 519,905,345 45,810,989

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Expenses

Trustee, custodian and administration fees 5(a),(e) 4,647,650 4,041,899 2,406,846 2,250,276 8,024,767 6,740,582

Safe custody and bank charges 1,656 2,890 1,184 1,880 2,372 4,441

Transaction handling fees 5(a),(e) 39,280 39,520 39,040 39,440 39,520 39,760

Printing and postage expenses 119,455 182,427 61,505 102,112 206,620 303,207

Auditor’s remuneration 11 57,936 52,936 29,919 29,612 100,104 87,926

Insurance premium 8,291 7,025 4,273 3,911 14,334 11,711

Investment management fees 5(b),(e) 61,144 67,924 40,040 45,239 101,559 99,655

Member services fees 5(b),(e) 2,083,618 1,811,449 1,078,807 1,008,198 3,596,836 3,020,010

Formation cost - - - - - -

Legal and professional fee 51,375 57,962 27,372 31,762 87,729 97,758

Other expenses 772 810 400 451 1,330 1,346

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Total operating expenses 7,071,177 6,264,842 3,689,386 3,512,881 12,175,171 10,406,396

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Increase/(decrease) in net assets

attributable to members 237,812,574 24,080,155 61,060,950 15,620,940 507,730,174 35,404,593

═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════

The accompanying notes are an integral part of these financial statements


110

STATEMENT OF COMPREHENSIVE INCOME - CONSTITUENT FUNDS (continued)

Allianz Stable Growth Fund Allianz MPF Conservative Fund Allianz Hong Kong Fund

20091 Note 2021 2020 2021 2020 2021 2020


Income








loss and derivative financial instruments 5(c) 122,289,415 4,767,038 (11,281,092) 4,183,304 345,734,633 (41,036,703)

─────────── ─────────── ─────────── ─────────── ─────────── ───────────


-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Expenses


Safe custody and bank charges 1,638 2,824 1,824 3,354 2,176 3,974





Investment management fees 5(b),(e) 55,783 57,582 - - 102,395 96,934

Member services fees 5(b),(e) 1,960,674 1,750,375 755,491 2,176,292 3,248,073 2,661,540



Other expenses 727 781 782 976 1,203 1,191

─────────── ─────────── ─────────── ─────────── ─────────── ───────────


-------------------- -------------------- -------------------- -------------------- -------------------- --------------------


attributable to members 167,731,958 27,666,491 190,453 10,605,974 474,838,598 (7,041,840)

═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════



111


Allianz Asian Fund Allianz Flexi Balanced Fund Allianz Greater China Fund

20091 Note 2021 2020 2021 2020 2021 2020


Income








loss and derivative financial instruments 5(c) 391,758,884 107,438,425 37,690,530 2,160,826 97,540,460 44,458,467

─────────── ─────────── ─────────── ─────────── ─────────── ───────────


-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Expenses


Safe custody and bank charges 2,061 3,385 994 1,524 1,047 1,406





Investment management fees 5(b),(e) 131,353 113,026 42,951 60,712 42,361 36,967

Member services fees 5(b),(e) 3,149,255 2,218,061 736,300 727,298 987,628 627,514



Other expenses 1,163 991 273 323 364 282

─────────── ─────────── ─────────── ─────────── ─────────── ───────────


-------------------- -------------------- -------------------- -------------------- -------------------- --------------------



═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════



112


Allianz Oriental Pacific Fund Allianz RMB Money Market Fund Allianz MPF Age 65 Plus Fund

20091 Note 2021 2020 2021 2020 2021 2020


Income

Interest on bank deposits - - - - 1 3

Other income 319 - - - 179 5,847



derivative financial instruments 5(c) 30,103,496 6,096,515 1,806,361 (307,723) 5,691,482 6,518,331



loss and derivative financial instruments 5(c) 51,756,112 44,927,132 4,042,947 (235,544) 3,759,761 (857,849)

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Total net income/(loss) 81,859,927 51,023,647 5,849,308 (543,267) 9,451,423 5,666,332

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Expenses

Trustee, custodian and administration fees 5(a),(e) 1,129,178 639,333 399,857 322,782 452,734 297,903

Safe custody and bank charges 848 943 656 757 758 932

Transaction handling fees 5(a),(e) 39,360 39,040 37,680 37,200 - -



Insurance premium 2,034 1,101 716 559 1,250 800

Investment management fees 5(b),(e) 25,776 22,520 - - 576,194 398,008

Member services fees 5(b),(e) 504,987 285,187 178,341 144,143 - -

Formation cost - - - - 54,995 55,146


Other expenses 185 129 4,560 4,626 4,611 4,814

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Total operating expenses 1,757,437 1,034,242 641,354 533,406 1,124,790 791,100

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------


attributable to members 80,102,490 49,989,405 5,207,954 (1,076,673) 8,326,633 4,875,232

═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════



113


Allianz MPF Core Accumulation Fund Total

20091 Note 2021 2020 2021 2020

HK$ HK$ HK$ HK$

Income

Interest on bank deposits 2 2 24 23

Other income 3,116 6,132 3,614 11,979



derivative financial instruments 5(c) 27,745,151 13,003,695 694,588,066 285,753,991



loss and derivative financial instruments 5(c) 61,888,778 3,018,186 1,729,444,618 154,608,892

─────────── ─────────── ─────────── ───────────

Total net income/(loss) 89,637,047 16,028,015 2,424,036,322 440,374,885

-------------------- -------------------- -------------------- --------------------

Expenses

Trustee, custodian and administration fees 5(a),(e) 1,334,333 930,111 42,598,562 37,920,994

Safe custody and bank charges 1,086 1,468 18,300 29,778

Transaction handling fees 5(a),(e) - - 431,120 433,040

Printing and postage expenses 53,025 67,736 1,193,039 1,743,517

Auditor’s remuneration 11 25,672 19,261 580,040 504,462

Insurance premium 3,678 2,496 83,035 67,016

Investment management fees 5(b),(e) 1,734,838 1,245,740 2,914,394 2,244,307

Member services fees 5(b),(e) - - 18,280,010 16,430,067

Formation cost 54,856 55,006 109,851 110,152

Legal and professional fee 22,207 17,715 512,583 549,622

Other expenses 4,834 5,009 21,204 21,729

─────────── ─────────── ─────────── ───────────

Total operating expenses 3,234,529 2,344,542 66,742,138 60,054,684

-------------------- -------------------- -------------------- --------------------


attributable to members 86,402,518 13,683,473 2,357,294,184 380,320,201

═══════════ ═══════════ ═══════════ ═══════════



114

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO MEMBERS - CONSTITUENT FUNDS


20091 Note 2021 2020 2021 2020 2021 2020


Balance at the beginning of the year 923,441,237 949,748,984 514,007,044 518,941,519 1,547,388,872 1,596,670,889

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Subscription of units 3 111,065,189 132,996,920 98,959,041 127,955,155 221,368,620 228,906,412

Redemption of units 3 (190,886,319) (183,384,822) (144,132,535) (148,510,570) (370,461,179) (313,593,022)

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Net increase/(decrease) from units

transactions (79,821,130) (50,387,902) (45,173,494) (20,555,415) (149,092,559) (84,686,610)

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------



-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Balance at the end of the year 1,081,432,681 923,441,237 529,894,500 514,007,044 1,906,026,487 1,547,388,872

═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════



115

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO MEMBERS - CONSTITUENT FUNDS (continued)


20091 Note 2021 2020 2021 2020 2021 2020


Balance at the beginning of the year 897,872,341 908,596,390 1,127,688,716 1,151,408,738 1,371,606,028 1,461,279,463

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------



─────────── ─────────── ─────────── ─────────── ─────────── ───────────


transactions (71,428,128) (38,390,540) (119,965,373) (34,325,996) (168,748,237) (82,631,595)

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------


attributable to members 167,731,958 27,666,491 190,453 10,605,974 474,838,598 (7,041,840)

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Balance at the end of the year 994,176,171 897,872,341 1,007,913,796 1,127,688,716 1,677,696,389 1,371,606,028

═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════



116



20091 Note 2021 2020 2021 2020 2021 2020


Balance at the beginning of the year 1,227,855,212 1,164,857,427 354,781,427 386,602,845 353,627,521 315,299,183

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------



─────────── ─────────── ─────────── ─────────── ─────────── ───────────


transactions (79,202,851) (85,002,423) (34,326,317) (40,191,860) 71,928,485 (11,813,463)

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------



-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Balance at the end of the year 1,680,374,456 1,227,855,212 370,460,511 354,781,427 571,718,392 353,627,521

═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════



117



20091 Note 2021 2020 2021 2020 2021 2020


Balance at the beginning of the year 184,259,877 126,111,250 72,677,539 77,526,400 125,157,666 82,386,602

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------



─────────── ─────────── ─────────── ─────────── ─────────── ───────────


transactions 50,175,082 8,159,222 22,893,918 (3,772,188) 35,275,857 37,895,832

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------


attributable to members 80,102,490 49,989,405 5,207,954 (1,076,673) 8,326,633 4,875,232

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Balance at the end of the year 314,537,449 184,259,877 100,779,411 72,677,539 168,760,156 125,157,666

═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════



118



20091 Note 2021 2020 2021 2020

HK$ HK$ HK$ HK$

Balance at the beginning of the year 382,003,179 267,385,286 9,082,366,659 9,006,814,976

-------------------- -------------------- -------------------- --------------------

Subscription of units 3 225,596,283 221,809,117 2,774,684,451 2,422,817,587

Redemption of units 3 (176,460,569) (120,874,697) (3,293,033,484) (2,727,586,105)

─────────── ─────────── ─────────── ───────────


transactions 49,135,714 100,934,420 (518,349,033) (304,768,518)

-------------------- -------------------- -------------------- --------------------


attributable to members 86,402,518 13,683,473 2,357,294,184 380,320,201

-------------------- -------------------- -------------------- --------------------

Balance at the end of the year 517,541,411 382,003,179 10,921,311,810 9,082,366,659

═══════════ ═══════════ ═══════════ ═══════════



119

STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS


20091 2021 2020 2021 2020 2021 2020


Cash flows from operating activities

Increase/(decrease) in net assets attributable to members 237,812,574 24,080,155 61,060,950 15,620,940 507,730,174 35,404,593

Adjustment for:

Interest on bank deposits (2) (1) (1) (1) (4) (3)

Net change in financial assets at fair value through profit or

loss

(157,982,650)

26,443,086

(15,674,884)

5,038,953

(358,451,141)

49,471,992

Net change in derivative financial instruments - - - - - -

Net change in amounts receivable on sale of investments 1,453,024 (1,516,232) 401,949 (377,364) (669,248) (301,203)

Net change in amounts payable on purchase of investments 316,512 163,544 (489,774) (538,122) 1,464,234 1,001,868

Net change in other payables 72,311 (72,695) (5,454) (32,465) 183,719 (130,427)

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Cash generated from/(used in) operations 81,671,769 49,097,857 45,292,786 19,711,941 150,257,734 85,446,820

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Interest received 2 1 1 1 4 3

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Net cash generated from/(used in) operating activities 81,671,771 49,097,858 45,292,787 19,711,942 150,257,738 85,446,823

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Cash flows from financing activities

Proceeds from subscription of units 110,967,373 132,482,768 99,393,288 128,413,969 220,548,499 226,500,907

Payments on redemption of units (192,513,556) (181,566,555) (144,482,541) (148,055,210) (370,480,199) (311,862,136)

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Net cash generated from/(used in) financing activities (81,546,183) (49,083,787) (45,089,253) (19,641,241) (149,931,700) (85,361,229)

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------



120

STATEMENT OF CASH FLOWS - CONSTITUENT FUNDS (continued)


2021 2020 2021 2020 2021 2020


Net increase/(decrease) in cash and cash equivalents 125,588 14,071 203,534 70,701 326,038 85,594

Cash and cash equivalents at the beginning of year 145,086 131,015 131,733 61,032 217,257 131,663

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Cash and cash equivalents at the end of year 270,674 145,086 335,267 131,733 543,295 217,257

═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════

Analysis of balances of cash and cash equivalents:

Cash and bank deposits (representing cash and bank

deposits with original maturity of 3 months or less) 270,674 145,086 335,267 131,733 543,295 217,257

═══════════ ══════════ ══════════ ══════════ ═══════════ ══════════



121



20091 2021 2020 2021 2020 2021 2020



Increase/(decrease) in net assets attributable to members 167,731,958 27,666,491 190,453 10,605,974 474,838,598 (7,041,840)

Adjustment for:



loss

(96,046,911)

10,782,742

120,487,521

24,004,500

(306,023,657)

89,880,520


Net change in amounts receivable on sale of investments 529,113 (1,308,629) 988,603 (4,293,602) (2,497,617) (81,758)

Net change in amounts payable on purchase of investments 104,381 (223,278) (4,140,502) 3,647,306 497,825 1,331,110

Net change in other payables 34,978 (59,988) (656,098) (88,672) 161,989 (150,624)

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Cash generated from/(used in) operations 72,353,517 36,857,336 116,869,973 33,875,502 166,977,135 83,937,405

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------


─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Net cash generated from/(used in) operating activities 72,353,519 36,857,338 116,869,977 33,875,506 166,977,138 83,937,408

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------




─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Net cash generated from/(used in) financing activities (72,061,162) (36,897,966) (116,768,465) (33,778,666) (166,984,280) (83,886,902)

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------



122



2021 2020 2021 2020 2021 2020


Net increase/(decrease) in cash and cash equivalents 292,357 (40,628) 101,512 96,840 (7,142) 50,506


─────────── ─────────── ─────────── ─────────── ─────────── ───────────


═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════




═══════════ ══════════ ══════════ ══════════ ═══════════ ══════════



123



20091 2021 2020 2021 2020 2021 2020



Increase/(decrease) in net assets attributable to members 531,722,095 148,000,208 50,005,401 8,370,442 146,162,386 50,141,801

Adjustment for:



loss

(452,558,617)

(62,935,297)

(15,593,959)

32,016,263

(218,184,501)

(38,310,034)


Net change in amounts receivable on sale of investments (36,284) (1,449,109) (1,156,022) 115,630 248,511 (798,962)

Net change in amounts payable on purchase of investments 1,160,767 (65,689) (1,254,205) 1,325,720 2,144,131 168,723

Net change in other payables 276,486 (40,137) (5,516) (44,602) 130,125 2,738

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Cash generated from/(used in) operations 80,564,444 83,509,974 31,995,698 41,783,452 (69,499,349) 11,204,265

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

1


─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Net cash generated from/(used in) operating activities 80,564,447 83,509,976 31,995,699 41,783,453 (69,499,348) 11,204,266

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------




─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Net cash generated from/(used in) financing activities (80,395,520) (83,478,125) (31,926,017) (41,624,128) 69,524,835 (11,186,355)

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------



124



2021 2020 2021 2020 2021 2020


Net increase/(decrease) in cash and cash equivalents 168,927 31,851 69,682 159,325 25,487 17,911


─────────── ─────────── ─────────── ─────────── ─────────── ───────────


═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════




═══════════ ══════════ ══════════ ══════════ ══════════ ══════════



125



20091 2021 2020 2021 2020 2021 2020



Increase/(decrease) in net assets attributable to members 80,102,490 49,989,405 5,207,954 (1,076,673) 8,326,633 4,875,232

Adjustment for:

Interest on bank deposits - - - - (1) (3)


loss

(130,293,088)

(58,152,941)

(28,067,320)

4,874,833

(43,623,725)

(42,779,444)

Net change in derivative financial instruments - - - - - (157,846)

Net change in amounts receivable on sale of investments (158,951) 34,531 (3,204,876) 649 371,650 (2,324,809)

Net change in amounts payable on purchase of investments (285,262) 1,453,671 956,999 (122,817) (2,514,276) 1,561,120

Net change in other payables 81,323 26,105 17,086 (9,539) 29,238 22,535

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Cash generated from/(used in) operations (50,553,488) (6,649,229) (25,090,157) 3,666,453 (37,410,481) (38,803,215)

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------

--

Interest received - - - - 1 3

─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Net cash generated from/(used in) operating activities (50,553,488) (6,649,229) (25,090,157) 3,666,453 (37,410,480) (38,803,212)

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------




─────────── ─────────── ─────────── ─────────── ─────────── ───────────

Net cash generated from/(used in) financing activities 50,616,672 6,667,157 25,137,138 (3,650,805) 37,410,515 38,662,499

-------------------- -------------------- -------------------- -------------------- -------------------- --------------------



126



2021 2020 2021 2020 2021 2020


Net increase/(decrease) in cash and cash equivalents 63,184 17,928 46,981 15,648 35 (140,713)


─────────── ─────────── ─────────── ─────────── ─────────── ───────────


═══════════ ═══════════ ═══════════ ═══════════ ═══════════ ═══════════




══════════ ══════════ ══════════ ══════════ ══════════ ══════════



127



20091 2021 2020 2021 2020

HK$ HK$ HK$ HK$


Increase/(decrease) in net assets attributable to members 86,402,518 13,683,473 2,357,294,184 380,320,201

Adjustment for:

Interest on bank deposits (2) (2) (24) (23)


loss

(136,176,325)

(113,984,669)

(1,838,189,257)

(73,649,496)

Net change in derivative financial instruments - (263,258) - (421,104)

Net change in amounts receivable on sale of investments 5,851,403 (5,864,747) 2,121,255 (18,165,605)

Net change in amounts payable on purchase of investments (5,589,711) 5,420,353 (7,628,881) 15,123,509

Net change in other payables 81,251 53,985 401,438 (523,786)

─────────── ─────────── ─────────── ───────────

Cash generated from/(used in) operations (49,430,866) (100,954,865) 513,998,715 302,683,696

-------------------- -------------------- -------------------- --------------------

Interest received 2 2 24 23

─────────── ─────────── ─────────── ───────────

Net cash generated from/(used in) operating activities (49,430,864) (100,954,863) 513,998,739 302,683,719

-------------------- -------------------- -------------------- --------------------


Proceeds from subscription of units 226,703,436 219,480,998 2,777,261,331 2,406,452,019

Payments on redemption of units (177,828,134) (118,114,291) (3,290,399,449) (2,708,344,860)

─────────── ─────────── ─────────── ───────────

Net cash generated from/(used in) financing activities 48,875,302 101,366,707 (513,138,118) (301,892,841)

-------------------- -------------------- -------------------- --------------------



128



2021 2020 2021 2020

HK$ HK$ HK$ HK$

Net increase/(decrease) in cash and cash equivalents (555,562) 411,844 860,621 790,878

Cash and cash equivalents at the beginning of year 623,144 211,300 2,369,303 1,578,425

─────────── ─────────── ─────────── ───────────

Cash and cash equivalents at the end of year 67,582 623,144 3,229,924 2,369,303

═══════════ ═══════════ ═══════════ ═══════════



deposits with original maturity of 3 months or less) 67,582 623,144 3,229,924 2,369,303

═══════════ ═══════════ ═══════════ ═══════════



129

NOTES TO THE FINANCIAL STATEMENTS

1 The Scheme

Allianz Global Investors MPF Plan (the “Scheme”) is a master trust scheme established under a trust deed dated 14 July 2000, as subsequently amended and replaced by a consolidated trust deed dated 20 March 2008, as amended. The Scheme is registered under Section 21 of the Hong Kong Mandatory Provident Fund Schemes Ordinance (the “Ordinance”) and is required to comply with the Ordinance and the relevant regulations, guidelines and codes issued by the Mandatory Provident Fund Schemes Authority (“MPFA”). The Scheme comprises 13 (2020: 13) constituent funds as at 30 June 2021. Each of the constituent funds is approved by the MPFA and has its own investment policy and predetermined fees and charges. Contributions and benefits are dealt with at the scheme level whereas investments in approved pooled investment funds are dealt with at the constituent funds level. The Scheme introduced two new constituent funds on 1 April 2017, namely Allianz MPF Core Accumulation Fund and Allianz MPF Age 65 Plus Fund, with effect on 1 April 2017 in relation to the Default Investment Strategy (the “DIS”), a new initiative by the MPFA aiming to offer standardised and low fee investment solution to scheme members. In accordance with the Ordinance, the payments charged to the DIS constituent funds are disclosed in note 13. Each constituent fund has 3 classes of units. Class T units are issued in respect of special voluntary contributions and amounts transferred from other schemes. Class A and Class B units are issued in respect of contributions other than special voluntary contributions and amounts transferred from other schemes to the Scheme that are to be invested in the constituent funds. The financial information of the Scheme comprises (i) the Statement of Net Assets Available for Benefits as at 30 June 2021, and the Statement of Changes in Net Assets Available for Benefits and Statement of Cash Flows for the year ended 30 June 2021 of the Scheme; and (ii) the Statement of Net Assets as at 30 June 2021, and the Statement of Comprehensive Income, Statement of Changes in Net Assets Attributable to Members and Statement of Cash Flows for the year ended 30 June 2021 of each of its constituent funds.

2 Summary of significant accounting policies

The significant accounting policies applied in the preparation of the financial statements of the Scheme and its constituent funds are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of preparation

The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative financial instruments) at fair value through profit or loss.


130


2 Summary of significant accounting policies (continued) (a) Basis of preparation (continued)

The preparation of financial statements in conformity with HKFRSs requires the Trustee to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

All references to net assets throughout the financial statements refer to net assets attributable to members unless otherwise stated. All the assets and liabilities are held for the purpose of being traded or are expected to be realised within one year.

Standards and amendments to existing standards effective 1 July 2020

There are no standards, amendments to standards or interpretations that are effective for annual periods beginning on 1 July 2020 that have a material effect on the financial statements of the Scheme and its constituent funds.

New standards, amendments and interpretations effective after 1 July 2020 and have not been early adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2020, and have not been early adopted in preparing these financial statements. None of these are expected to have a material effect on the financial statements of the Scheme and its constituent funds.


131


2 Summary of significant accounting policies (continued) (b) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of the Scheme and its constituent funds are measured using the currency of the primary economic environment in which they operate (the “functional currency”). This is the Hong Kong Dollar (“HK$”). The Scheme and its constituent funds have adopted the Hong Kong Dollar as their presentation currency.

(ii) Transaction and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign currency assets and liabilities are translated into the functional currency using the exchange rate prevailing at year end date. Foreign exchange gains and losses arising from translation are included in the Statement of Changes in Net Assets Available for Benefits for the Scheme and the Statement of Comprehensive Income for the constituent funds. Foreign exchange gains and losses relating to cash and cash equivalents are presented in the Statement of Changes in Net Assets Available for Benefits for the Scheme and the Statement of Comprehensive Income for the constituent funds within “net foreign currency gains/(losses)”. Foreign exchange gains and losses relating to the financial assets carried at fair value through profit or loss are presented in the Statement of Changes in Net Assets Available for Benefits within “net gain/(loss) on investments in constituent funds” for the Scheme and the Statement of Comprehensive Income within “realised gains/(losses) on sale of financial assets at fair value through profit or loss and derivative financial instruments” and “change in unrealised gains/losses in value of financial assets at fair value through profit or loss and derivative financial instruments” for the constituent funds.

(c) Income

Interest income is recognised on a time-proportionate basis using the effective interest method. Other income is accounted for on an accruals basis.


132


2 Summary of significant accounting policies (continued) (d) Expenses

All expenses are accounted for on an accruals basis.

(e) Contributions

Contributions are accounted for on an accruals basis. (f) Benefits

Benefits are accounted for on an accruals basis.

(g) Transfers in

Transfers in amounts are recognised when the right to receive payment is established.

(h) Transfers out

Transfers out amounts are accounted for when the obligation to make payment is established.

(i) Forfeitures

If a member ceases to be a member, the part of the employer’s voluntary balance not otherwise disposed of in accordance with the rules of the Scheme may be applied in reducing the future contributions of the employer, or in such other manner as the Trustee may determine, having consulted the employers (including payment to the employers). Forfeitures arising from such cases which have not been designated for the benefit of existing members and which have not been returned to the employers would be treated as liabilities of the Scheme.

(j) Cash and cash equivalents

Cash and cash equivalents include cash at bank, bank deposits with original maturities of 3 months or less from the date of placement net of bank overdrafts, if any.

(k) Financial assets and financial liabilities at fair value through profit or loss

(i) Classification

The Scheme and its constituent funds classify their investments based on both the Scheme’s and its constituent funds’ business models for managing those financial assets and the contractual cash flow characteristics of the financial assets. The portfolios of financial assets are managed and performances are evaluated on a fair value basis. The Scheme and its constituent funds are primarily focused on fair value information and use that information to assess the assets’ performance and to make decisions. The Scheme and its constituent funds have not taken the option to irrevocably designate any equity securities as fair value through other comprehensive income. Consequently, all investments are measured at fair value through profit or loss.


133

NOTES TO THE FINANCIAL STATEMENTS 2 Summary of significant accounting policies (continued) (k) Financial assets and financial liabilities at fair value through profit or loss (continued)

(i) Classification (continued)

All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative. As such, the Scheme and its constituent funds classify all of their investment portfolios as financial assets or liabilities as fair value through profit or loss. The Scheme’s and its constituent funds’ policies require the Investment Manager to evaluate the information about these financial assets and liabilities on a fair value basis together with other related financial information.

(ii) Recognition, derecognition and measurement

Regular purchases and sales of investments are recognised on the trade date - the date on which the Scheme and its constituent funds commit to purchase or sell the investments. Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value. Transaction costs are expensed as incurred in the Statement of Changes in Net Assets Available for Benefits for the Scheme and the Statement of Comprehensive Income for the constituent funds. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or the Scheme and its constituent funds have transferred substantially all risks and rewards of ownership. Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measured at fair value. Gains and losses arising from changes in the fair value of the “financial assets or financial liabilities at fair value through profit or loss” and “derivative financial instruments” categories are presented in the Statement of Changes in Net Assets Available for Benefits within “net gain/(loss) on investments in constituent funds” for the Scheme and in the Statement of Comprehensive Income within “realised gains/(losses) on sale of financial assets at fair value through profit or loss and derivative financial instruments” and “change in unrealised gains/losses in value of financial assets at fair value through profit or loss and derivative financial instruments” for the constituent funds in the period in which they arise.


134

NOTES TO THE FINANCIAL STATEMENTS 2 Summary of significant accounting policies (continued) (k) Financial assets and financial liabilities at fair value through profit or loss (continued)

(iii) Fair value estimation

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments in constituent funds are valued at their respective closing net asset value per unit.

Investments in approved pooled investment funds are valued at their respective closing net asset value per unit as provided by the administrators/managers of such funds.

(iv) Transfers between levels of the fair value hierarchy Transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the reporting period.

(l) Amounts receivable on sale of investments/payable on purchase of investments

Amounts receivable on sale of investments/payable on purchase of investments represent receivables for investments sold and payables for investments purchased that have been contracted for but not yet settled or delivered on the year end date respectively.

These amounts are recognised initially at fair value and subsequently measured at amortised cost. At each reporting date, the Scheme and its constituent funds shall measure the loss allowance on amounts receivable on sale of investments at an amount equal to the lifetime expected credit losses if the credit risk has increased significantly since initial recognition. If, at the reporting date, the credit risk has not increased significantly since initial recognition, the Scheme and its constituent funds shall measure the loss allowance at an amount equal to 12-month expected credit losses. Significant financial difficulties of the counterparty, probability that the counterparty will enter bankruptcy or financial reorganisation, and default in payments are all considered indicators that a loss allowance may be required. If the credit risk increases to the point that it is considered to be credit impaired, interest income will be calculated based on the gross carrying amount adjusted for the loss allowance. A significant increase in credit risk is defined by the Investment Manager as any contractual payment which is more than 30 days past due. Any contractual payment which is more than 90 days past due is considered credit impaired.

(m) Other payables

Other payables are recognised initially at fair value and subsequently stated at amortised cost using the effective interest method.


135

NOTES TO THE FINANCIAL STATEMENTS 2 Summary of significant accounting policies (continued)

(n) Proceeds and payments on subscription and redemption of units

Proceeds and payments on subscription and redemption of units are shown as movements in the Statement of Changes in Net Assets Attributable to Members of the respective constituent funds. The net asset value of the constituent funds is computed on each business day. Prices for subscriptions and redemptions on each business day are based on the net asset value per unit as at the close of business on the relevant business day.

(o) Units in issue

The constituent funds issue redeemable units, which are redeemable at the holder’s option, represent puttable financial instruments of the constituent funds. The puttable financial instruments are classified as equity if they meet all the following criteria: • the puttable instruments entitle the holder to a pro-rata share of net assets; • the puttable instruments are the most subordinated unit in issue and unit features are

identical; • there are no contractual obligations to deliver cash or another financial asset; and • the total expected cash flows from the puttable instrument over its life are based

substantially on the profit or loss of the constituent funds. Each of the constituent funds issues three classes of redeemable units and does not have identical rights. Therefore, they do not meet the criteria for equity classification and are classified as financial liabilities. They are measured at the redemption amount that is payable at the year end date if the holder exercises the right to put the units back to the respective constituent funds.

(p) Structured entities

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. A structured entity often has some or all of the following features or attributes; (a) restricted activities, (b) a narrow and well-defined objective, such as to provide investment opportunities for investors by passing on risks and rewards associated with the assets of the structured entity to investors, (c) insufficient equity to permit the structured entity to finance its activities without subordinated financial support and (d) financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other risks (tranches).

The constituent funds consider all of their investments in other funds (‘‘underlying funds’’) to be investments in unconsolidated structured entities. The constituent funds invest in underlying funds whose objectives range from achieving medium to long term capital growth and whose investment strategy does not include the use of leverage. The underlying funds are managed by the Investment Manager. The underlying funds finance their operations by issuing redeemable units which are puttable at the holder’s option and entitle the holder to a proportional stake in the respective fund’s net assets. The constituent funds hold redeemable units in each of its underlying funds.

The change in fair value of each underlying fund is included in the Statement of Comprehensive Income within “realised gains/(losses) on sale of financial assets at fair value through profit or loss and derivative financial instruments” and “change in unrealised gains/losses in value of financial assets at fair value through profit or loss and derivative financial instruments” for the constituent funds.


136

NOTES TO THE FINANCIAL STATEMENTS 3 Number of units in issue and net assets attributable to members per unit

The movement of the number of units in issue during the year and net assets attributable to members per unit as at year end are as follows: 2021

Allianz

Balanced Fund Allianz Capital

Stable Fund Allianz



Expressed in number of units

Class A Balance at 30 June 2020 945,624.34975 829,118.52121 1,465,109.69926 951,245.50376 2,939,174.12056 Issued during the year 126,411.93234 100,324.21764 332,123.91921 163,177.03571 1,396,837.77350 Redeemed during the year (412,280.19140) (412,531.77266) (688,866.65393) (501,413.58579) (2,510,876.63994)

Balance at 30 June 2021 659,756.09069 516,910.96619 1,108,366.96454 613,008.95368 1,825,135.25412

Class B Balance at 30 June 2020 13,153,612.87632 8,513,657.07253 21,491,436.51858 13,864,580.07660 32,277,230.22454 Issued during the year 1,543,991.59513 1,611,688.49092 2,494,928.88307 2,148,883.05073 19,105,312.11142 Redeemed during the year (2,492,982.37340) (2,438,739.99905) (4,528,119.93217) (3,532,475.38373) (22,835,059.61096)

Balance at 30 June 2021 12,204,622.09805 7,686,605.56440 19,458,245.46948 12,480,987.74360 28,547,482.72500

Class T Balance at 30 June 2020 11,758,487.09870 7,282,240.01464 18,436,612.38971 11,444,909.60319 31,130,284.69949 Issued during the year 984,966.84633 1,249,538.91171 2,053,206.02141 1,669,264.57178 13,292,015.05093 Redeemed during the year (1,673,884.62702) (1,457,388.26058) (3,018,526.68168) (1,819,904.84051) (15,526,056.41196)

Balance at 30 June 2021 11,069,569.31801 7,074,390.66577 17,471,291.72944 11,294,269.33446 28,896,243.33846

Expressed in Hong Kong dollars

Net assets attributable to members per unit

Class A 43.8460 33.2190 48.2336 38.8918 16.8430 Class B 44.9196 34.2633 49.6728 40.1996 16.8483 Class T 45.5554 35.2476 50.7129 41.4904 17.1717


137

NOTES TO THE FINANCIAL STATEMENTS 3 Number of units in issue and net assets attributable to members per unit (continued) 2021

Allianz

Hong Kong Fund Allianz

Asian Fund Allianz

Flexi Balanced Fund Allianz

Greater China Fund Expressed in number of units

Class A Balance at 30 June 2020 910,498.66706 1,163,240.25445 1,221,372.88689 804,515.72036 Issued during the year 208,855.14936 126,126.95550 240,052.36709 298,710.13799 Redeemed during the year (409,134.55473) (536,641.69882) (844,746.41549) (545,587.62145)

Balance at 30 June 2021 710,219.26169 752,725.51113 616,678.83849 557,638.23690

Class B Balance at 30 June 2020 12,733,376.17959 10,214,795.78757 7,045,746.91448 6,204,149.93408 Issued during the year 2,699,253.33092 1,802,642.47331 1,421,487.88265 3,502,281.82768 Redeemed during the year (4,247,293.36278) (2,705,401.92800) (2,052,238.76987) (2,743,624.08304)

Balance at 30 June 2021 11,185,336.14773 9,312,036.33288 6,414,996.02726 6,962,807.67872

Class T Balance at 30 June 2020 9,668,384.68956 8,787,831.71515 6,219,943.84380 4,403,719.41123 Issued during the year 1,920,770.72484 1,960,262.18832 1,196,100.00684 2,945,300.10080 Redeemed during the year (2,489,165.22716) (1,728,636.32052) (1,274,615.78446) (1,739,291.27984)

Balance at 30 June 2021 9,099,990.18724 9,019,457.58295 6,141,428.06618 5,609,728.23219



Class A 72.6394 80.5428 27.0332 36.7765 Class B 79.4742 87.8459 27.9583 44.5720 Class T 81.0068 88.8882 28.4034 42.9368


138


Allianz Oriental

Pacific Fund Allianz RMB

Money Market Fund Allianz MPF

Age 65 Plus Fund Allianz MPF Core

Accumulation Fund Expressed in number of units Class A Balance at 30 June 2020 490,114.36806 174,572.35525 280,806.46956 2,052,727.97768 Issued during the year 168,738.78220 257,536.26487 140,961.05251 897,251.80875 Redeemed during the year (365,844.11316) (280,116.55686) (261,906.04328) (1,191,731.31665)

Balance at 30 June 2021 293,009.03710 151,992.06326 159,861.47879 1,758,248.46978


Balance at 30 June 2021 3,262,104.94842 3,810,802.29120 6,936,027.40235 21,222,627.60162

Class T Balance at 30 June 2020 2,091,692.27797 1,961,622.38684 4,772,458.84645 10,134,394.42664 Issued during the year 1,921,577.04703 1,842,299.36913 5,023,783.34698 6,701,699.91568 Redeemed during the year (970,896.82806) (1,314,157.04444) (2,981,970.79057) (4,158,822.38690)

Balance at 30 June 2021 3,042,372.49694 2,489,764.71153 6,814,271.40286 12,677,271.95542





139

NOTES TO THE FINANCIAL STATEMENTS 3 Number of units in issue and net assets attributable to members per unit (continued)

2020

Allianz

Balanced Fund Allianz Capital

Stable Fund Allianz



Expressed in number of units

Class A Balance at 30 June 2019 1,038,450.55027 782,082.69813 1,435,485.31420 885,932.51150 2,612,727.80438 Issued during the year 219,229.34399 186,006.86555 364,002.17192 233,289.86982 1,674,422.10124 Redeemed during the year (312,055.54451) (138,971.04247) (334,377.78686) (167,976.87756) (1,347,975.78506)

Balance at 30 June 2020 945,624.34975 829,118.52121 1,465,109.69926 951,245.50376 2,939,174.12056

Class B Balance at 30 June 2019 14,464,689.65283 9,201,135.21650 23,452,319.55907 15,048,418.82332 35,496,845.20330 Issued during the year 2,237,722.16135 2,627,378.26560 3,753,972.72663 2,927,754.78594 19,746,754.39950 Redeemed during the year (3,548,798.93786) (3,314,856.40957) (5,714,855.76712) (4,111,593.53266) (22,966,369.37826)

Balance at 30 June 2020 13,153,612.87632 8,513,657.07253 21,491,436.51858 13,864,580.07660 32,277,230.22454

Class T Balance at 30 June 2019 11,884,051.59628 7,345,069.57841 18,915,375.87313 11,519,627.95403 30,332,480.23342 Issued during the year 1,399,887.58753 1,448,768.16709 2,278,354.13633 1,509,609.14486 12,165,821.76423 Redeemed during the year (1,525,452.08511) (1,511,597.73086) (2,757,117.61975) (1,584,327.49570) (11,368,017.29816)

Balance at 30 June 2020 11,758,487.09870 7,282,240.01464 18,436,612.38971 11,444,909.60319 31,130,284.69949



Class A 34.7375 29.7088 36.0746 32.7270 16.8403 Class B 35.5172 30.5804 37.0775 33.7602 16.8456 Class T 36.0091 31.4497 37.8425 34.8338 17.1686

Remark: With effect from 31 March 2020, the issue and redemption prices of each constituent fund have been rounded up to the nearest four decimal places.


140


Allianz

Hong Kong Fund Allianz

Asian Fund Allianz

Flexi Balanced Fund Allianz

Greater China Fund Expressed in number of units

Class A Balance at 30 June 2019 1,046,618.34153 1,129,280.16353 1,315,933.08411 740,577.05680 Issued during the year 286,337.73165 223,399.19440 263,641.99789 412,464.80820 Redeemed during the year (422,457.40612) (189,439.10348) (358,202.19511) (348,526.14464)

Balance at 30 June 2020 910,498.66706 1,163,240.25445 1,221,372.88689 804,515.72036


Balance at 30 June 2020 12,733,376.17959 10,214,795.78757 7,045,746.91448 6,204,149.93408

Class T Balance at 30 June 2019 9,972,887.85988 9,088,008.14210 6,482,610.43917 4,391,228.03648 Issued during the year 2,326,120.74380 1,218,695.74685 1,321,026.97468 1,598,011.50865 Redeemed during the year (2,630,623.91412) (1,518,872.17380) (1,583,693.57005) (1,585,520.13390)

Balance at 30 June 2020 9,668,384.68956 8,787,831.71515 6,219,943.84380 4,403,719.41123






141


Allianz Oriental

Pacific Fund Allianz RMB

Money Market Fund Allianz MPF

Age 65 Plus Fund Allianz MPF Core

Accumulation Fund Expressed in number of units Class A Balance at 30 June 2019 443,577.46960 137,866.63599 335,147.95354 849,688.10020 Issued during the year 148,650.45548 100,368.88172 469,851.85426 1,610,135.63137 Redeemed during the year (102,113.55702) (63,663.16246) (524,193.33824) (407,095.75389)

Balance at 30 June 2020 490,114.36806 174,572.35525 280,806.46956 2,052,727.97768


Balance at 30 June 2020 2,854,359.77540 2,819,558.29619 5,869,777.03786 19,763,294.49726

Class T Balance at 30 June 2019 1,831,065.76460 2,086,766.55560 3,318,203.84104 6,927,531.84164 Issued during the year 843,140.05616 712,970.08868 3,454,349.50688 6,048,904.87551 Redeemed during the year (582,513.54279) (838,114.25744) (2,000,094.50147) (2,842,042.29051)

Balance at 30 June 2020 2,091,692.27797 1,961,622.38684 4,772,458.84645 10,134,394.42664






142


4 Financial risk management

Each constituent fund invests in the Approved Pooled Investment Funds/Index-Tracking Collective Investment Scheme (“APIFs”/“ITCIS”) to get its asset allocation. The APIFs/ITCIS can be equity funds, balanced funds, equity/bond funds or MPF conservative funds. The purpose is to achieve the asset allocation in accordance with each constituent fund’s investment objectives and policies. Since the constituent funds derive their value from the value of these APIFs/ITCIS, their risk profile is a function of the risks inherent in each APIF/ITCIS. These inherent risks include market risk (i.e. currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Investment Manager of the APIFs/ITCIS uses various tools to manage these risks. The Scheme offers a wide range of investment choices to members to allow them the flexibility of choosing the desired risk profile for their investments.

(a) Market risk

Market risk embodies the potential for both gains and losses and includes currency risk, interest rate risk and price risk.

Investments of the constituent funds comprise units in APIFs/ITCIS. This is in accordance with the constituent funds’ investment policies. The underlying investments of the APIFs/ITCIS directly or indirectly invest in a variety of financial instruments, which may expose the constituent funds to the market risk.

The constituent funds’ market risk is managed through diversification of the investments made by the APIFs/ITCIS.

(i) Currency risk

The Scheme and its constituent funds are not subject to direct currency risk as all transactions of the Scheme and its constituent funds are denominated in Hong Kong dollar. Investments of the constituent funds comprise units in APIFs/ITCIS. The underlying APIFs/ITCIS may directly or indirectly invest in a variety of financial instruments denominated in currencies other than their reporting currencies, which may expose the constituent funds’ investments to indirect currency risk. The investment manager of the underlying APIFs/ITCIS has policies and procedures to manage portfolios effectively and mitigate the currency risk.


143


4 Financial risk management (continued) (a) Market risk (continued)

(i) Currency risk (continued)

The sensitivity of the net assets attributable to members of the constituent funds which had significant exposures to currencies other than Hong Kong dollar and United States dollar, which is linked to Hong Kong dollar via their underlying APIFs/ITCIS, is shown as below:


Underlying currencies Net exposure monetary

and non-monetary

Estimated increase in net assets attributable to

members if the currency strengthened by 5%

2021 2020 2021 2020 HK$ HK$ HK$ HK$

Australian Dollar 5,271,164 9,822,323 263,558 491,116 British Pound 31,298,496 30,168,667 1,564,925 1,508,433 Canadian Dollar 3,859,270 3,808,453 192,964 190,423 Chinese Yuan 25,210,884 21,636,202 1,260,544 1,081,810 Danish Kroner 6,747,487 2,303,274 337,374 115,164 Euro 140,212,071 130,253,853 7,010,604 6,512,693 Indian Rupee 15,734,616 16,544,444 786,731 827,222 Indonesian Rupiah 2,795,403 1,729,919 139,770 86,496 Japanese Yen 123,855,124 101,051,455 6,192,756 5,052,573 Korean Won 26,899,275 23,049,563 1,344,964 1,152,478 Norwegian Krone 3,308,067 641,988 165,403 32,099 Philippines Peso 1,695,002 2,795,815 84,750 139,791 Singapore Dollar 2,887,130 3,225,291 144,357 161,265 Swedish Krona 12,140,196 4,571,408 607,010 228,570 Swiss Franc 18,179,422 15,976,692 908,971 798,835 Taiwan Dollar 37,447,901 31,277,456 1,872,395 1,563,873 Thai Baht 7,448,977 3,386,061 372,449 169,303


144


4 Financial risk management (continued)

(a) Market risk (continued)




and non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$

Australian Dollar 4,220,845 3,838,472 211,042 191,924 British Pound 15,260,635 17,779,206 763,032 888,960 Canadian Dollar 3,725,028 3,932,111 186,251 196,606 Chinese Yuan 13,653,364 5,426,292 682,668 271,315 Danish Kroner 1,029,176 359,972 51,459 17,999 Euro 90,185,668 89,624,825 4,509,283 4,481,241 Indian Rupee 3,323,252 3,908,984 166,163 195,449 Indonesian Rupiah 590,407 408,731 29,520 20,437 Japanese Yen 53,739,456 54,134,090 2,686,973 2,706,704 Korean Won 5,681,300 5,445,960 284,065 272,298 Norwegian Krone 422,291 100,334 21,115 5,017 Philippines Peso 357,995 660,572 17,900 33,029 Singapore Dollar 609,780 762,045 30,489 38,102 Swedish Krona 1,798,203 714,451 89,910 35,723 Swiss Franc 2,623,824 2,496,948 131,191 124,847 Taiwan Dollar 9,114,977 9,449,641 455,749 472,482 Thai Baht 1,573,272 800,030 78,664 40,002


145





Allianz Growth Fund


and non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$ Australian Dollar 14,812,954 23,387,374 740,648 1,169,369 British Pound 53,764,569 46,448,174 2,688,228 2,322,409 Canadian Dollar 3,535,649 3,539,834 176,782 176,992 Chinese Yuan 41,231,174 44,512,001 2,061,559 2,225,600 Danish Kroner 15,863,427 5,087,823 793,171 254,391 Euro 208,968,578 191,090,603 10,448,429 9,554,530 Indian Rupee 35,834,650 36,312,307 1,791,733 1,815,615 Indonesian Rupiah 6,366,364 3,796,885 318,318 189,844 Japanese Yen 236,403,657 176,785,691 11,820,183 8,839,285 Korean Won 61,261,495 50,589,963 3,063,075 2,529,498 Norwegian Krone 7,756,745 1,418,122 387,837 70,906 Philippines Peso 3,860,266 6,136,349 193,013 306,817 Singapore Dollar 6,575,267 7,078,979 328,763 353,949 Swedish Krona 28,528,380 10,098,024 1,426,419 504,901 Swiss Franc 42,702,804 35,291,758 2,135,140 1,764,588 Taiwan Dollar 82,995,937 65,100,893 4,149,797 3,255,045 Thai Baht 16,964,600 7,431,841 848,230 371,592


146







and non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$ Australian Dollar 6,154,582 9,516,852 307,729 475,843 British Pound 29,902,545 30,667,232 1,495,127 1,533,362 Canadian Dollar 5,512,789 5,497,002 275,639 274,850 Chinese Yuan 25,263,093 15,336,075 1,263,155 766,804 Danish Kroner 4,126,885 1,391,197 206,344 69,560 Euro 155,444,065 147,050,732 7,772,203 7,352,537 Indian Rupee 10,496,133 10,962,682 524,807 548,134 Indonesian Rupiah 1,864,737 1,146,279 93,237 57,314 Japanese Yen 108,702,101 98,661,772 5,435,105 4,933,089 Korean Won 17,943,773 15,273,105 897,189 763,655 Norwegian Krone 1,962,082 387,767 98,104 19,388 Philippines Peso 1,130,690 1,852,563 56,535 92,628 Singapore Dollar 1,925,926 2,137,143 96,296 106,857 Swedish Krona 7,385,368 2,761,170 369,268 138,058 Swiss Franc 11,008,025 9,650,061 550,401 482,503 Taiwan Dollar 26,328,260 22,623,719 1,316,413 1,131,186 Thai Baht 4,969,009 2,243,672 248,450 112,184



and non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$

Chinese Yuan 75,600,331 110,181,433 3,780,017 5,509,072


147





Allianz Asian Fund


and non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$ Chinese Yuan 79,769,214 76,328,531 3,988,461 3,816,427 Indian Rupee 130,547,569 115,660,411 6,527,378 5,783,021 Indonesian Rupiah 23,193,008 12,093,677 1,159,650 604,684 Korean Won 223,178,938 161,136,992 11,158,947 8,056,850 Philippines Peso 14,063,160 19,545,237 703,158 977,262 Singapore Dollar 23,954,052 22,547,662 1,197,703 1,127,383 Taiwan Dollar 276,058,230 175,810,651 13,802,912 8,790,533 Thai Baht 61,802,956 23,671,584 3,090,148 1,183,579



and non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$

Australian Dollar 12,025,051 7,242,379 601,253 362,119 British Pound 5,554,096 6,363,132 277,705 318,157 Canadian Dollar 1,765 1,747 88 87 Chinese Yuan 26,706,869 5,038,191 1,335,343 251,910 Danish Kroner 985 2,588,470 49 129,424 Euro 6,959,725 8,708,282 347,986 435,414 Japanese Yen 14,883,079 5,168,468 744,154 258,423 Korean Won 4,062,784 140,199 203,139 7,010 Malaysian Ringgit 248,753 10,997 12,438 550 New Zealand Dollar 52 53 3 3 Singapore Dollar 8,492,116 2,906,113 424,606 145,306 Swiss Franc 356 378 18 19 Taiwan Dollar 2,702,072 2,833,181 135,104 141,659 Thai Baht - 1,909,471 - 95,474


148







and non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$ Chinese Yuan 33,786,566 22,906,717 1,689,328 1,145,336 Taiwan Dollar 123,560,714 68,904,496 6,178,036 3,445,225



and non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$ Australian Dollar 19,073,650 11,597,386 953,683 579,869 Chinese Yuan 47,353 2,315,931 2,368 115,797 Japanese Yen 62,412,822 24,449,008 3,120,641 1,222,450 Korean Won 19,806,446 21,179,499 990,322 1,058,975 New Zealand Dollar 22,826,998 10,289,927 1,141,350 514,496 Singapore Dollar 5,984,580 7,085,040 299,229 354,252 Taiwan Dollar 49,355,695 40,608,987 2,467,785 2,030,449 Thai Baht 6,639,775 - 331,989 -


Underlying currencies Net exposure monetary and

non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$

Chinese Yuan 66,108,885 46,604,651 3,305,444 2,330,233


149







and non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$ Australian Dollar 538,645 175,493 26,932 8,775 British Pound 3,056,871 1,713,226 152,844 85,661 Canadian Dollar 634,679 316,966 31,734 15,848 Chinese Yuan 1,672,772 240,540 83,639 12,027 Danish Kroner 341,595 134,748 17,080 6,737 Euro 14,517,080 5,815,491 725,854 290,775 Indian Rupee 355,390 331,077 17,770 16,554 Indonesian Rupiah 63,138 34,618 3,157 1,731 Japanese Yen 7,033,677 3,602,841 351,684 180,142 Korean Won 607,560 461,253 30,378 23,063 Mexican Peso - 57,910 - 2,896 Norwegian Krone 187,415 35,252 9,371 1,763 Philippines Peso 38,284 55,948 1,914 2,797 Singapore Dollar 73,623 64,542 3,681 3,227 Swedish Krona 627,573 251,021 31,379 12,551 Swiss Franc 956,465 877,298 47,823 43,865 Taiwan Dollar 751,513 503,256 37,576 25,163 Thai Baht 168,246 67,760 8,412 3,388


150







and non-monetary



2021 2020 2021 2020 HK$ HK$ HK$ HK$ Australian Dollar 733,916 321,132 36,696 16,057 British Pound 12,722,594 10,485,832 636,130 524,292 Canadian Dollar 1,798,439 1,626,960 89,922 81,348 Chinese Yuan 3,741,999 1,985,670 187,100 99,284 Danish Kroner 2,918,619 1,115,573 145,931 55,779 Euro 45,258,320 30,211,044 2,262,916 1,510,552 Indian Rupee 2,878,214 2,947,740 143,911 147,387 Indonesian Rupiah 511,342 308,221 25,567 15,411 Japanese Yen 27,361,108 23,000,787 1,368,055 1,150,039 Korean Won 4,920,481 4,106,764 246,024 205,338 Mexican Peso - 79,579 - 3,979 Norwegian Krone 1,601,291 307,773 80,065 15,389 Philippines Peso 310,054 498,133 15,503 24,907 Singapore Dollar 540,709 574,653 27,035 28,733 Swedish Krona 5,362,040 2,191,562 268,102 109,578 Swiss Franc 8,172,124 7,659,329 408,606 382,966 Taiwan Dollar 6,086,323 4,480,739 304,316 224,037 Thai Baht 1,362,585 603,298 68,129 30,165

If the currency weakened by 5% (2020: 5%), the net assets attributable to members would decrease by an equal amount. The analysis is performed on the same basis for 2020. As the majority of financial assets and liabilities in the APIF of Allianz MPF Conservative Fund is denominated in Hong Kong dollar, the functional currency, the constituent fund has limited exposure to indirect currency risk.





(ii) Interest rate risk

Interest rate risk arises from change in interest rates which may inversely affect the value of fixed income securities held by APIFs/ITCIS and therefore result in potential gain or loss to the APIFs/ITCIS. If interest rates at the year end date had increased/(decreased) by 50 basis points (2020: 50 basis points) with all other variables held constant, it is estimated that the net assets attributable to members would have (decreased)/increased accordingly as below. The analysis is performed on the same basis for 2020.

2021 Allianz MPF

Allianz Allianz Allianz MPF Allianz Flexi Allianz Allianz Allianz RMB Allianz MPF Core Balanced Capital Allianz Allianz Stable Conservative Allianz Hong Allianz Balanced Greater Oriental Money Age 65 Accumulation

Fund Stable Fund Growth Fund Growth Fund Fund Kong Fund Asian Fund Fund China Fund Pacific Fund Market Fund Plus Fund Fund HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$- 000 HK$000 HK$000 HK$000

Increase in interest rate (8,029) (9,659) (3,661) (13,496) (23) - - (2,794) - - (15) (4,715) (6,578) Decrease in interest rate 8,029 9,659 3,661 13,496 23 - - 2,794 - - 15 4,715 6,578

Allianz MPF Allianz Allianz Allianz MPF Allianz Flexi Allianz Allianz Allianz RMB Allianz MPF Core

Balanced Capital Allianz Allianz Stable Conservative Allianz Hong Allianz Balanced Greater Oriental Money Age 65 Accumulation Fund Stable Fund Growth Fund Growth Fund Fund Kong Fund Asian Fund Fund China Fund Pacific Fund Market Fund Plus Fund Fund

HK$000 HK$000 HK$000 HK$000 HK$- 000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000

Increase in interest rate (7,421) (10,136) (2,517) (13,033) (27) - - (3,745) - - (15) (3,774) (5,188) Decrease in interest rate 7,421 10,136 2,517 13,033 27 - - 3,745 - - 15 3,774 5,188

The Scheme and its constituent funds are exposed to risks associated with the effects of fluctuations in the prevailing levels of market interest rates on their cash deposits. However, this is relatively immaterial to the size of the net assets of the Scheme and its constituent funds.

151


152



(iii) Price risk

Price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market. Other than the APIFs of Allianz MPF Conservative Fund and Allianz RMB Money Market Fund and ITCIS which do not invest in equity instruments, all other constituent funds are exposed to price risks as changes in market prices of the equity instruments in the APIF’s investment portfolio will affect the value of the financial instruments held by them and accordingly the net assets attributable to members of the constituent funds. Price risk is mitigated and monitored by the Investment Manager of APIFs on a regular basis by constructing a diversified portfolio of investments across different issuers, sectors and markets. The constituent funds’ investments in underlying funds are subject to the terms and conditions of the underlying funds’ prospectus and are susceptible to market price risk arising from uncertainties about future value of those underlying funds. The Investment Manager makes investment decisions after extensive due diligence of the underlying funds and their strategies. The right of the constituent funds to request redemption of their investments in underlying funds is on a daily basis. These investments are included in financial assets at fair value through profit or loss in the Statement of Net Assets of the constituent funds. As at year end, the overall market exposures of the constituent funds were as follows:


As at 30 June

2021 2020

Fair value Cost % of net Fair value Cost % of net

HK$ HK$ assets HK$ HK$ assets

Approved Pooled

Investment Funds

1,081,874,753

674,554,315

100.04

923,892,103

703,964,421

100.05

--------------------- -------------------- ------------- ------------------ --------------------- ------------- Allianz Balanced Fund invests in Allianz Global Investors Choice Fund - Allianz Choice Balanced Fund (the “underlying fund”). The following table shows the net market exposure the underlying fund has to the market: Net asset value % of the

of underlying fund investments

2021 2020 of constituent fund

HK$ HK$ 2021 2020

Allianz Global Investors Choice Fund -

Allianz Choice Balanced Fund (Note i) 5,400,033,685 4,547,818,860 100 100

------------ ------------


153



(iii) Price risk (continued)

Allianz Capital Stable Fund As at 30 June

2021 2020



Approved Pooled

Investment Funds

529,902,980

420,595,197

100.00

514,228,096

444,769,838

100.04

------------------- ------------------- ------------- ------------------- ------------------- -------------

Allianz Capital Stable invests in Allianz Global Investors Choice Fund - Allianz Choice Capital Stable Fund (the “underlying fund”). The following table shows the net market exposure the underlying fund has to the market:

Allianz Growth Fund

As at 30 June

2021 2020



Approved Pooled

Investment Funds

1,906,686,594

1,116,713,874

100.03

1,548,235,453

1,155,284,642

100.05

--------------------- --------------------- ------------ --------------------- --------------------- ------------

Allianz Growth Fund invests in Allianz Global Investors Choice Fund - Allianz Choice Growth Fund (the “underlying fund”). The following table shows the net market exposure the underlying fund has to the market:

Net asset value

of underlying fund

% of the

investments


HK$ HK$ 2021 2020


Allianz Choice Growth Fund (Note iii) 6,021,808,645 4,656,085,528 100 100

------------- -------------

Net asset value

of underlying fund

% of the

investments


HK$ HK$ 2021 2020


Allianz Choice Capital Stable Fund

(Note ii) 2,216,012,496 2,023,827,774 100 100

-------------- -------------


154




Allianz Stable Growth Fund As at 30 June

2021 2020



Approved Pooled

Investment Funds

994,387,538

697,390,740

100.02

898,340,627

723,633,244

100.05

--------------------- --------------------- ------------- --------------------- --------------------- -------------

Allianz Stable Growth Fund invests in Allianz Global Investors Choice Fund - Allianz Choice Stable Growth Fund (the “underlying fund”). The following table shows the net market exposure the underlying fund has to the market:

Net asset value

of underlying fund

% of the

investments


HK$ HK$ 2021 2020


Allianz Choice Stable Growth Fund

(Note iv) 3,818,967,665 3,014,307,495 100 100

------------- -------------


As at 30 June

2021 2020



Approved Pooled

Investment Funds

1,007,628,939

988,869,212

99.97

1,128,116,460

1,098,075,641

100.04

--------------------- --------------------- ------------ --------------------- --------------------- -----------

Allianz MPF Conservative Fund invests in Allianz Global Investors Choice Fund - Allianz Choice HK$ Liquidity Fund (the “underlying fund”). The investments of the underlying fund are not subject to market price risk:

Net asset value

of underlying fund

% of the

investments


HK$ HK$ 2021 2020


Allianz Choice HK$ Liquidity Fund 1,540,419,771 1,606,301,633 100 100

------------- -------------


155




Allianz Hong Kong Fund As at 30 June

2021 2020



Approved Pooled

Investment Funds

1,678,328,236

1,142,628,189

100.04

1,372,304,579

1,182,339,165

100.05

---------------------- ---------------------- ----------- ---------------------- ---------------------- -----------

Allianz Hong Kong Fund invests in Allianz Global Investors Choice Fund - Allianz Choice Hong Kong Fund (the “underlying fund”). The following table shows the net market exposure the underlying fund has to the market:

Net asset value

of underlying fund

% of the

investments


HK$ HK$ 2021 2020


Allianz Choice Hong Kong Fund

(Note v) 6,191,786,959 4,546,660,406 100 100

------------- -------------

Allianz Asian Fund

As at 30 June

2021 2020



Approved Pooled

Investment Funds

1,681,108,553

916,906,196

100.04

1,228,549,936

856,106,463

100.06

--------------------- ------------------- ------------ --------------------- --------------------- ------------

Allianz Asian Fund invests in Allianz Global Investors Choice Fund - Allianz Choice Asian Fund (the “underlying fund”). The following table shows the net market exposure the underlying fund has to the market:

Net asset value

of underlying fund

% of the

investments



HK$ HK$ 2021 2020

Allianz Choice Asian Fund (Note vi) 11,381,859,314 6,750,896,909 100 100

------------- -------------


156




Allianz Flexi Balanced Fund As at 30 June

2021 2020



Approved Pooled

Investment Funds

370,429,586

300,251,799

99.99

354,835,627

322,348,370

100.02

------------------- ------------------- ------------- ------------------ --------------------- -------------

Allianz Flexi Balanced Fund invests in Allianz Global Investors Choice Fund - Allianz Choice Flexi Balanced Fund (the “underlying fund”). The following table shows the net market exposure the underlying fund has to the market:

Net asset value

of underlying fund

% of the

investments


HK$ HK$ 2021 2020


Allianz Choice Flexi Balanced Fund

(Note vii) 2,485,637,125 2,182,768,026 100 100

------------- ------------- Allianz Greater China Fund

As at 30 June

2021 2020



Approved Pooled

Investment Funds

571,986,905

413,435,414

100.05

353,802,404

292,791,373

100.05

------------------- ------------------- ------------- ------------------ --------------------- -------------

Allianz Greater China Fund invests in Allianz Global Investors Choice Fund - Allianz Choice Greater China Fund (the “underlying fund”). The following table shows the net market exposure the underlying fund has to the market:

Net asset value

of underlying fund

% of the

investments



HK$ HK$ 2021 2020

Allianz Choice Greater China Fund

(Note viii) 3,490,728,198 2,072,919,092 100 100

------------- -------------


157




Allianz Oriental Pacific Fund As at 30 June

2021 2020



Approved Pooled

Investment Funds

314,627,190

211,427,055

100.03

184,334,102

132,890,079

100.04

------------------- ------------------- ------------

- ------------------ ------------------- -------------

Allianz Oriental Pacific Fund invests in Allianz Global Investors Choice Fund - Allianz Choice Oriental Fund (the “underlying fund”). The following table shows the net market exposure the underlying fund has to the market:

Net asset value

of underlying fund

% of the

investments


HK$ HK$ 2021 2020


Allianz Choice Oriental Fund (Note ix) 512,693,774 277,465,454 100 100

-------------- ------------- Allianz RMB Money Market Fund As at 30 June

2021 2020



Approved Pooled

Investment Funds

100,775,814

96,847,150

100.00

72,708,494

72,822,777

100.04

------------------- ------------------- ------------- ------------------ --------------------- -------------

Allianz RMB Money Market Fund invests in a portfolio of approved pooled investment funds (the “underlying funds”). The following table shows the net market exposure the underlying funds have to various markets:

Net asset value

of underlying funds

% of the

investments


HK$ HK$ 2021 2020


Allianz Choice HK$ Cash Fund

(Note x) 1,758,505,246 1,531,413,775 33.84 33.78

Allianz Choice RMB Money Market

Fund (Note xi) 170,780,989 104,347,192 66.16 66.22

------------- -------------


158




Allianz MPF Age 65 Plus Fund As at 30 June

2021 2020



Approved Pooled

Investment Funds/

Index-Tracking

Collective

Investment

Scheme

168,715,582

162,663,594

99.97

125,091,857

122,799,630

99.95

------------------ ------------------- ------------- ------------------ ------------------- -------------

Allianz MPF Age 65 Plus Fund invests in a portfolio of approved pooled investment funds and index-tracking collective investment scheme (the “underlying funds”). The following table shows the net market exposure the underlying funds have to various markets: Net asset value

of underlying funds

% of the

investments


HK$ HK$ 2021 2020


Allianz Choice Asian Fund (Note vi) 11,381,859,314 6,750,896,909 2.72 2.79

Allianz Choice “Best Styles” Europe

Fund (Note xii)

1,911,031,489

1,426,507,024 4.06 4.20

Allianz Choice Global Fixed Income

Fund (Note xiii)

4,533,188,710

3,896,659,055 26.95 11.08

Allianz Choice HK$ Cash Fund (Note x) 1,758,505,246 1,531,413,775 2.92 3.02

Allianz Choice Japan Fund (Note xiv) 1,557,313,227 1,125,621,097 1.27 1.52

Allianz Choice “Best Styles” US Fund

(Note xv)

2,233,354,770

1,791,615,945 12.17 11.76

iShares World Government Bond Index

Fund Class X (Note xvi)

4,990,602,674

3,524,480,213

49.91

65.64

------------- -------------


159




Allianz MPF Core Accumulation Fund As at 30 June

2021 2020



Approved Pooled

Investment Funds/

Index-Tracking

Collective

Investment

Scheme

517,857,747

438,109,080

100.06

381,681,422

363,821,533

99.92 ------------------- ------------------- ------------- ------------------ --------------------- -------------

Allianz MPF Core Accumulation Fund invests in a portfolio of approved pooled investment funds and index-tracking collective investment scheme (the “underlying funds”). The following table shows the net market exposure the underlying funds have to various markets:

Net asset value

of underlying funds

% of the

investments


HK$ HK$ 2021 2020


Allianz Choice Asian Fund (Note vi) 11,381,859,314 6,750,896,909 7.16 8.20

Allianz Choice “Best Styles” Europe

Fund (Note xii)

1,911,031,489

1,426,507,024 11.30 12.11

Allianz Choice Global Fixed Income

Fund (Note xiii)

4,533,188,710

3,896,659,055 11.95 6.69

Allianz Choice HK$ Cash Fund (Note x) 1,758,505,246 1,531,413,775 3.20 2.99

Allianz Choice Japan Fund (Note xiv) 1,557,313,227 1,125,621,097 4.00 5.21

Allianz Choice “Best Styles” US Fund

(Note xv)

2,233,354,770

1,791,615,945 38.07 35.03

iShares World Government Bond

Index Fund Class X (Note xvi)

4,990,602,674

3,524,480,213

24.32

29.77

------------ -------------


160




The investment portfolio of the underlying funds by country as at 30 June 2021 and 2020 are as follows:

Note (i) - Allianz Choice Balanced Fund

2021 2020

% of investments % of investments

AUSTRALIA 0.68% 1.29%

AUSTRIA 0.15% 0.11%

BELGIUM 0.21% 0.05%

BRITISH VIRGIN ISLANDS 1.27% 0.51%

CANADA 0.35% 0.23%

CAYMAN ISLANDS 0.40% -

CHINA 21.54% 22.77%

DENMARK 0.68% 0.27%

FINLAND 0.32% 0.16%

FRANCE 3.02% 2.99%

GERMANY 1.89% 1.62%

GREAT BRITAIN 4.05% 4.45%

HONG KONG 8.58% 9.66%

INDIA 1.57% 1.95%

INDONESIA 0.28% 0.20%

IRELAND 0.26% 3.76%

ITALY 2.34% 1.76%

JAPAN 11.96% 12.10%

LUXEMBOURG 3.73% -

MACAU 0.03% 0.05%

NETHERLANDS 1.52% 1.51%

NORWAY 0.33% 0.07%

PHILIPPINES 0.17% 0.29%

PORTUGAL 0.01% 0.01%

SINGAPORE 1.10% 0.97%

SOUTH KOREA 3.00% 3.56%

SPAIN 1.68% 1.95%

SWEDEN 1.21% 0.53%

SWITZERLAND 1.90% 1.94%

TAIWAN 3.64% 3.59%

THAILAND 0.73% 0.47%

UNITED ARAB EMIRATES 0.17% 0.20%

USA 21.23% 20.98%

100.00% 100.00%


161




Note (ii) - Allianz Choice Capital Stable Fund

2021 2020



AUSTRIA 0.04% 0.18%

BELGIUM 0.06% 0.02%


CANADA 0.67% 0.22%


CHINA 13.00% 16.35%

DENMARK 0.23% 0.08%

FINLAND 0.09% 0.05%

FRANCE 3.37% 2.55%

GERMANY 1.83% 0.72%


HONG KONG 10.40% 11.79%

INDIA 0.74% 0.89%


IRELAND 0.58% 3.70%

ITALY 5.15% 3.32%

JAPAN 11.45% 13.30%

LUXEMBOURG 5.38% -

MACAU 0.09% 0.14%


NORWAY 0.09% 0.02%




SPAIN 3.55% 3.86%

SWEDEN 0.40% 0.16%


TAIWAN 1.98% 2.27%



USA 21.52% 21.56%

100.00% 100.00%


162




Note (iii) - Allianz Choice Growth Fund

2021 2020

% of Investments % of Investments


AUSTRIA 0.19% 0.08%

BELGIUM 0.27% 0.07%


CANADA 0.21% 0.26%


CHINA 24.75% 24.99%

DENMARK 0.87% 0.35%

FINLAND 0.42% 0.21%

FRANCE 2.80% 3.11%

GERMANY 1.89% 2.00%


HONG KONG 7.56% 8.22%

INDIA 1.96% 2.52%


IRELAND 0.12% 4.40%

ITALY 1.07% 0.97%

JAPAN 12.52% 12.05%

LUXEMBOURG 3.40% -

MACAU 0.01% 0.01%


NORWAY 0.42% 0.09%





SPAIN 0.83% 0.99%

SWEDEN 1.56% 0.69%


TAIWAN 4.41% 4.32%



USA 20.93% 20.71%

100.00% 100.00%


163

NOTES TO THE FINANCIAL STATEMENTS 4 Financial risk management (continued) (a) Market risk (continued)


Note (iv) - Allianz Choice Stable Growth Fund

2021 2020



AUSTRIA 0.10% 0.15%

BELGIUM 0.14% 0.03%


CANADA 0.51% 0.23%


CHINA 17.26% 19.56%

DENMARK 0.46% 0.17%

FINLAND 0.21% 0.10%

FRANCE 3.25% 2.73%

GERMANY 1.89% 1.13%


HONG KONG 9.51% 10.81%

INDIA 1.16% 1.34%


IRELAND 0.43% 3.98%

ITALY 3.80% 2.54%

JAPAN 11.60% 12.71%

LUXEMBOURG 4.29% -

MACAU 0.06% 0.10%


NORWAY 0.22% 0.04%


PORTUGAL 0.01% -



SPAIN 2.65% 2.91%

SWEDEN 0.82% 0.33%


TAIWAN 2.84% 2.80%



USA 21.31% 21.25%

100.00% 100.00%


164



Note (v) - Allianz Choice Hong Kong Fund

2021 2020


CHINA 73.95% 72.81%

HONG KONG 26.05% 27.19%

100.00% 100.00%

Note (vi) - Allianz Choice Asian Fund

2021 2020


CHINA 43.98% 45.62%

HONG KONG 8.89% 10.25%

INDIA 8.01% 9.71%





TAIWAN 16.42% 14.05%


USA - 0.52%

100.00% 100.00%


165



Note (vii) - Allianz Choice Flexi Balanced Fund

2021 2020




CANADA 0.82% -

CAYMAN ISLANDS 0.86% 0.57%

CHINA 15.84% 32.68%

FRANCE 0.81% -

GERMANY 1.82% 2.02%


HONG KONG 23.68% 20.69%

IRELAND 0.68% 1.54%

JAPAN 7.61% 4.76%

LUXEMBOURG 1.32% -

MACAU 0.21% 0.78%





TAIWAN 0.62% 1.20%

THAILAND - 0.58%

USA 12.57% 7.51%

100.00% 100.00%

Note (viii) - Allianz Choice Greater China Fund

2021 2020


CHINA 61.85% 61.56%

HONG KONG 16.08% 19.48%

TAIWAN 22.07% 18.96%

100.00% 100.00%


166



Note (ix) - Allianz Choice Oriental Fund

2021 2020



CHINA 26.25% 20.55%

HONG KONG 13.13% 10.85%

JAPAN 20.00% 14.46%

NEW ZEALAND 7.49% 6.27%



TAIWAN 16.06% 23.94%

THAILAND 2.08% -

USA 0.51% -

100.00% 100.00%

Note (x) - Allianz Choice HK$ Cash Fund

2021 2020


CHINA 54.58% 77.08%

HONG KONG 45.42% 22.92%

100.00% 100.00%

Note (xi) - Allianz Choice RMB Money Market Fund

2021 2020


AUSTRALIA 11.61% -

BRITISH VIRGIN ISLANDS 7.69% -

CANADA - 44.79%

CHINA - 15.72%

HONG KONG 23.07% 28.89%


THAILAND 19.24% -

UNITED ARAB EMIRATES 11.54% -

100.00% 100.00%


167




Note (xii) - Allianz Choice “Best Styles” Europe Fund

2021 2020


AUSTRIA 1.28% 0.45%

BELGIUM 1.76% 0.48%

DENMARK 5.08% 2.43%

FINLAND 2.73% 1.45%

FRANCE 16.66% 20.66%

GERMANY 11.09% 13.77%


HONG KONG 0.70% 1.98%

IRELAND 0.48% 1.09%

ITALY 4.47% 5.11%


NORWAY 2.79% 0.62%


SPAIN 3.66% 4.91%

SWEDEN 9.33% 4.82%


100.00% 100.00%


168




Note (xiii) - Allianz Choice Global Fixed Income Fund

2021 2020



AUSTRIA - 0.26%


CANADA 1.00% 0.25%


CHINA 4.68% 11.17%

FRANCE 4.59% 2.86%

GERMANY 2.32% 0.40%


HONG KONG 12.38% 13.94%

IRELAND 0.93% 0.12%

ITALY 8.26% 4.81%

JAPAN 11.45% 14.67%

LUXEMBOURG 2.11% -

MACAU 0.15% 0.22%




SPAIN 5.67% 5.66%


TAIWAN - 0.36%

THAILAND - 0.28%


USA 20.55% 21.38%

100.00% 100.00%

Note (xiv) - Allianz Choice Japan Fund

2021 2020


JAPAN 100.00% 100.00%

100.00% 100.00%


169




Note (xv) - Allianz Choice “Best Styles” US Fund

2021 2020


CANADA 0.71% 1.32%

USA 99.29% 98.68%

100.00% 100.00%

Note (xvi) - iShares World Government Bond Index Fund Class X

2021 2020



AUSTRIA 1.39% 1.41%

BELGIUM 1.81% 2.05%

CANADA 1.85% 1.73%

DENMARK 0.42% 0.47%

FINLAND 0.56% 0.54%

FRANCE 9.58% 9.47%

GERMANY 7.57% 7.62%


IRELAND 0.76% 0.73%

ISRAEL 0.28% 0.26%

ITALY 6.77% 7.51%

JAPAN 8.93% 8.92%

MALAYSIA 0.29% 0.35%

MEXICO 0.63% 0.64%


NORWAY 0.19% 0.00%

POLAND 0.00% 0.00%


SPAIN 4.22% 4.86%

SWEDEN 0.27% 0.27%

USA 42.50% 42.75%

Cash and Derivatives 1.75% -

100.00% 100.00%

The constituent funds’ maximum exposures to loss from their interests in underlying funds are equal to the total fair value of their investments in those underlying funds.

Once the constituent funds have disposed of their units in underlying funds, the constituent funds cease to be exposed to any risk from those underlying funds.


170



(iii) Price risk (continued) The constituent funds’ investment strategies entail trading in other underlying funds on a regular basis. Total purchases in underlying funds during the years ended 30 June 2021 and 2020 are disclosed in the following table.

2021 2020

HK$ HK$

Allianz Balanced Fund 82,642,615 97,103,930

Allianz Capital Stable Fund 80,500,297 103,498,014

Allianz Growth Fund 169,467,995 172,775,862

Allianz Stable Growth Fund 111,815,518 120,625,341

Allianz MPF Conservative Fund 505,809,046 487,959,571

Allianz Hong Kong Fund 298,148,838 340,804,586

Allianz Asian Fund 248,867,581 136,767,161

Allianz Flexi Balanced Fund 62,791,360 68,537,906

Allianz Greater China Fund 239,593,441 111,450,370

Allianz Oriental Pacific Fund 144,507,101 52,563,798

Allianz RMB Money Market Fund 67,461,812 35,451,038

Allianz MPF Age 65 Plus Fund 140,313,819 183,784,107

Allianz MPF Core Accumulation Fund 259,024,577 345,552,074

The net gains/(losses) incurred on investments in underlying funds during the years ended 30 June 2021 and 2020 are stated in the respective constituent funds’ Statement of Comprehensive Income.






As at 30 June 2021, a 20% (2020: 20%) decrease in prices of equities in the underlying APIF5/ITCIS would have decreased the net asset value ("NAV") of the respective constituent funds and the change in net assets attributable to members by the amounts shown below; an equal change in the opposite direction would have increased the NAV by an equal but opposite amount.

2021 Allianz MPF

Allianz Allianz Allianz MPF Allianz Flexi Allianz Allianz Allianz RMB Allianz MPF Core Balanced Capital Allianz Allianz Stable Conservative Allianz Hong Allianz Balanced Greater China Oriental Money Age 65 Plus Accumulation

Fund Stable Fund Growth Fund Growth Fund Fund Kong Fund Asian Fund Fund Fund Pacific Fund Market Fund Fund Fund HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000

Decrease in NAV (154,860) (33,962) (347,910) (102,905) - (334,326) (332,248) (22,110) (116,353) (72,582) - (6,792) (62471)

Allianz MPF Allianz Allianz Allianz MPF Allianz Flexi Allianz Allianz Allianz RMB Allianz MPF Core

Balanced Capital Allianz Allianz Stable Conservative Allianz Hong Allianz Balanced Greater China Oriental Money Age 65 Plus Accumulation Fund Stable Fund Growth Fund Growth Fund Fund Kong Fund Asian Fund Fund Fund Pacific Fund Market Fund Fund Fund

HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000

Decrease in NAV (124948) (29,577) (267,888) (87218) - (262,863) (224,011) (15,647) (66,588) (36,681) - (4,693) (43,223)

171


172


4 Financial risk management (continued) (b) Credit risk

The Scheme and its constituent funds are exposed to credit risk, which is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation.

The main concentration to which the Scheme and its constituent funds are exposed arises from the debt securities held by the underlying APIFs/ITCIS. The Scheme and its constituent funds are also exposed to counterparty credit risk on amounts receivable on redemption of units in constituent funds, contributions receivable, amounts receivable on fund switching, amounts receivable on sale of investments and cash and cash equivalents.

Credit risk of the APIFs/ITCIS arising from debt securities is mitigated by investing primarily in rated securities or securities issued by rated counterparties of minimum credit ratings of “BBB-” by Standard and Poor’s. Typically, in cases where the credit rating of an investment or an issuer falls below the above minimum ratings, the Investment Manager would disposes it as soon as practical.

All of the cash held by the Scheme and its constituent funds is deposited with Citibank N.A. Hong Kong. The credit rating of the bank is Aa3 (2020: Aa3) by Moody’s, for which credit risk is considered insignificant. The Investment Manager monitors the credit rating and financial position of the bank on an ongoing basis.

Assets of the Scheme and its constituent funds are held with the custodian. The custody of the assets is the responsibility of the Trustee.

The Scheme and its constituent funds measure credit risk and expected credit losses using probability of default, exposure at default and loss given default. Management considers both historical analysis and forward looking information in determining any expected credit loss. At 30 June 2021 and 30 June 2020, all amounts receivable on redemption of units in constituent funds, contributions receivable, amounts receivable on fund switching, amounts receivable on sale of investments and cash and cash equivalents are held with counterparties with a credit rating of Aa3 or higher as assigned by Moody’s, and are due to be settled within 1 month. Management considers the probability of default to be close to zero as the counterparties have a strong capacity to meet their contractual obligations in the near term. As a result, no loss allowance has been recognised based on 12-month expected credit losses as any such impairment would be wholly insignificant to the Scheme and its constituent funds.

The maximum exposure to credit risk at year end is the carrying amount of the financial assets as shown on the Statement of Net Assets Available for Benefits for the Scheme and the Statement of Net Assets for the constituent funds. As at 30 June 2021 and 30 June 2020, there were no significant concentrations of credit risk to counterparties.

The underlying APIFs/ITCIS of the constituent funds also hold debt securities and are therefore exposed to risk that the issuers may not be able to repay the principal amount at maturity and interests.


173



(b) Credit risk (continued)

The table below summarises the credit rating of the investment portfolio of the APIFs and ITCIS with direct exposures to bonds and money market instruments by Standard and Poor’s/Moody’s: As at 30 June 2021

Portfolio by rating category

Constituent funds Approved pooled investment

funds

Credit rating

AAA AA A BBB Total

Allianz Balanced Fund Allianz Choice Balanced Fund 22.42% 13.58% 40.03% 23.97% 100.00%

Allianz Capital Stable Fund Allianz Choice Capital Stable Fund 22.42% 13.58% 40.03% 23.97% 100.00%

Allianz Growth Fund Allianz Choice Growth Fund 22.42% 13.58% 40.03% 23.97% 100.00%

Allianz Stable Growth Fund Allianz Choice Stable Growth Fund 22.42% 13.58% 40.03% 23.97% 100.00%

Allianz MPF Conservative Fund Allianz Choice HK$ Liquidity Fund - - 100.00% - 100.00%

Allianz Flexi Balanced Fund Allianz Choice Flexi Balanced Fund 3.36% 7.82% 57.34% 31.48% 100.00%


Allianz Choice RMB Money Market Fund

-

53.82%

38.60%

7.58%

100.00%


Allianz Choice Global Fixed Income Fund

22.42%

13.58%

40.03%

23.97%

100.00%

iShares World Government Bond Index Fund Class X

57.95%

20.52%

13.45%

8.08%

100.00%



22.42%

13.58%

40.03%

23.97%

100.00%


Index Fund Class X 57.95%

20.52%

13.45%

8.08%

100.00%


174


4 Financial risk management (continued) (b) Credit risk (continued)

As at 30 June 2020 Portfolio by rating category

Constituent funds Approved pooled investment

funds

Credit rating

AAA AA A BBB Total

Allianz Balanced Fund Allianz Choice Balanced Fund 21.89% 14.26% 42.53% 21.32% 100.00%

Allianz Capital Stable Fund Allianz Choice Capital Stable Fund 21.89% 14.26% 42.53% 21.32% 100.00%

Allianz Growth Fund Allianz Choice Growth Fund 21.89% 14.26% 42.53% 21.32% 100.00%

Allianz Stable Growth Fund Allianz Choice Stable Growth Fund 21.89% 14.26% 42.53% 21.32% 100.00%

Allianz MPF Conservative Fund Allianz Choice HK$ Liquidity Fund - - 100.00% - 100.00%

Allianz Flexi Balanced Fund Allianz Choice Flexi Balanced Fund 1.02% 0.46% 57.42% 41.10% 100.00%


Allianz Choice RMB Money Market Fund

-

71.27%

28.73%

-

100.00%



21.89%

14.26%

42.53%

21.32%

100.00%

iShares World Government Bond Index Fund Class X

57.07%

20.45%

14.09%

8.39%

100.00%



21.89%

14.26%

42.53%

21.32%

100.00%


Index Fund Class X 57.07%

20.45%

14.09%

8.39%

100.00%


175



(c) Liquidity risk

Liquidity risk is the risk that the Scheme and its constituent funds may not be able to generate sufficient cash resources to settle their obligations in full as they fall due or can only do so on terms that are materially disadvantageous. The constituent funds are exposed to daily liquidity risk on redemptions of units. This arises from the risk that the Investment Manager may not be able to convert investments into cash to meet liquidity needs in a timely manner. The constituent funds’ assets are invested in APIFs/ITCIS. These funds are daily priced and readily redeemable, they are generally convertible into cash. As a result, the constituent funds should, in normal market conditions, be able to liquidate their APIFs/ ITCIS quickly at close to their fair value in order to meet its liquidity requirements. If the Investment Manager received aggregate request for the redemption of units more than 10% of the net asset value of the respective constituent funds, on any redemption date, the Investment Manager may elect to restrict the redemption to 10% of the net asset value. In this case all requests will be scaled down on a pro-rata basis to ensure redemptions remain below 10%. The remaining balance will be redeemed in priority to subsequent redemption requests on the next redemption day. This procedure is in place to manage liquidity risk in the constituent funds and to protect the interests of the remaining members. The Investment Manager did not restrict any redemptions during 2021 and 2020. The table below assumes no use of the 10% redemption restriction. The Investment Manager monitors the constituent funds’ liquidity position on a daily basis, and reviewed on a quarterly basis by a risk oversight committee. The tables below analyse the constituent funds’ financial liabilities into relevant maturity groupings based on the remaining period at the year end date to the contractual maturity date. The amounts in the table are the undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.

Allianz Balanced Fund Less than 1

month

1-3 months Over 3 months

HK$ HK$ HK$ At 30 June 2021 Amounts payable on purchase of investments 513,897 - - Amounts payable on redemption of units and

fund switching

720,912

-

-

Other payables 587,762 4,787 145,011 Net assets attributable to members 1,081,432,681 - - ─────────── ────────── ────────── Financial liabilities 1,083,255,252 4,787 145,011 ═══════════ ══════════ ══════════ At 30 June 2020 Amounts payable on purchase of investments 197,385 - - Amounts payable on redemption of units and

fund switching

2,348,149

-

-

Other payables 498,365 4,652 162,232 Net assets attributable to members 923,441,237 - - ─────────── ────────── ────────── Financial liabilities 926,485,136 4,652 162,232 ═══════════ ══════════ ══════════


176


4 Financial risk management (continued) (c) Liquidity risk (continued)


Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021

Amounts payable on purchase of investments 163,711 - -

Amounts payable on redemption of units and

fund switching

623,372

-

-

Other payables 290,956 2,572 74,140

Net assets attributable to members 529,894,500 - -

─────────── ────────── ──────────

Financial liabilities 530,972,539 2,572 74,140

═══════════ ══════════ ══════════

At 30 June 2020



fund switching

973,378

-

-

Other payables 279,630 2,594 90,898


─────────── ────────── ──────────


═══════════ ══════════ ══════════

Allianz Growth Fund

Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021

Amounts payable on purchase of investments 2,664,113 - -


fund switching

3,478,193

-

-

Other payables 1,032,002 8,100 251,350

Net assets attributable to members 1,906,026,487 - -

─────────── ────────── ──────────

Financial liabilities 1,913,200,795 8,100 251,350

═══════════ ══════════ ══════════

At 30 June 2020



fund switching

3,497,213

-

-

Other payables 831,110 7,808 268,815


─────────── ────────── ──────────


═══════════ ══════════ ══════════


177

NOTES TO THE FINANCIAL STATEMENTS 4 Financial risk management (continued)

(c) Liquidity risk (continued)


Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021



fund switching

1,549,470

-

-

Other payables 540,982 4,567 135,543


─────────── ────────── ──────────


═══════════ ══════════ ══════════

At 30 June 2020



fund switching

1,933,507

-

-

Other payables 484,194 4,484 157,436


─────────── ────────── ──────────


═══════════ ══════════ ══════════


Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021



fund switching

7,857,883

-

-

Other payables 6,568 5,353 136,410


─────────── ────────── ──────────


═══════════ ══════════ ══════════

At 30 June 2020



fund switching

10,804,796

-

-

Other payables 601,362 5,559 197,508


─────────── ────────── ──────────


═══════════ ══════════ ══════════


178




Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021



fund switching

7,652,562

-

-

Other payables 905,666 7,152 226,309


─────────── ────────── ──────────


═══════════ ══════════ ══════════

HK$ HK$ HK$

At 30 June 2020



fund switching

5,350,774

-

-

Other payables 733,416 6,980 236,742


─────────── ────────── ──────────


═══════════ ══════════ ══════════

Allianz Asian Fund

Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021



fund switching

2,925,222

-

-

Other payables 907,992 6,555 222,206


─────────── ────────── ──────────


═══════════ ══════════ ══════════

At 30 June 2020



fund switching

2,254,599

-

-

Other payables 654,771 5,756 199,740


─────────── ────────── ──────────


═══════════ ══════════ ══════════


179




Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021



fund switching

1,924,264

-

-

Other payables 205,054 1,800 50,916


─────────── ────────── ──────────


═══════════ ══════════ ══════════

At 30 June 2020



fund switching

548,672

-

-

Other payables 196,790 1,906 64,590


─────────── ────────── ──────────


═══════════ ══════════ ══════════


Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021



fund switching

1,895,145

-

-

Other payables 307,727 1,990 71,109


─────────── ────────── ──────────


═══════════ ══════════ ══════════

At 30 June 2020



fund switching

1,878,182

-

-

Other payables 191,698 1,656 57,347


─────────── ────────── ──────────


═══════════ ══════════ ══════════


180




Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021



fund switching

1,901,454

-

-

Other payables 171,533 991 36,926


─────────── ────────── ──────────

Financial liabilities 317,864,080 991 36,926

═══════════ ══════════ ══════════

At 30 June 2020



fund switching

396,796

-

-

Other payables 100,430 748 26,949


─────────── ────────── ──────────


═══════════ ══════════ ══════════


Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021



fund switching

3,416,402

-

-

Other payables 58,735 399 15,427


─────────── ────────── ──────────


═══════════ ══════════ ══════════

At 30 June 2020



fund switching

199,270

-

-



─────────── ────────── ──────────


═══════════ ══════════ ══════════


181




Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021



fund switching

2,634,190

-

-



─────────── ────────── ──────────


═══════════ ══════════ ══════════

At 30 June 2020



fund switching

2,392,133

-

-



─────────── ────────── ──────────


═══════════ ══════════ ══════════


182




Less than 1

month

1-3 months

Over 3

months

HK$ HK$ HK$

At 30 June 2021



fund switching

2,680,418

-

-

Other payables 284,751 1,980 123,696


─────────── ────────── ──────────


═══════════ ══════════ ══════════ At 30 June 2020



fund switching

4,047,983

-

-

Other payables 207,448 1,609 120,119


─────────── ────────── ──────────


═══════════ ══════════ ══════════

Units are redeemed on demand at the members’ option. However, the Trustee does not envisage that the contractual maturity disclosed in the tables above will be representative of the actual cash outflows, as the members typically retain their units for the long term. At 30 June 2021 and 2020, there was no individual member who held more than 10% of one of the constituent funds’ units.


183


4 Financial risk management (continued) (d) Fair value information

The fair value of financial assets and liabilities traded in active markets are based on quoted market prices at the close of trading on the year end date. The Scheme and its constituent funds utilised the latest net asset value for investments in constituent funds and APIFs/ ITCIS. An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transaction on an arm’s length basis. The carrying value less impairment provision of other receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the constituent funds for similar financial instruments. The fair value hierarchy has the following levels:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).

• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).

• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes ‘observable’ requires significant judgement by the constituent funds. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.


184

NOTES TO THE FINANCIAL STATEMENTS 4 Financial risk management (continued) (d) Fair value information (continued)

The following table analyses within the fair value hierarchy for the investments held by the constituent funds measured at fair value at 30 June 2021 and 2020.

Level 1 Level 2 Level 3 Total

HK$ HK$ HK$ HK$

Allianz Balanced Fund At 30 June 2021

Assets

Financial assets at fair value through

profit or loss - APIF - 1,081,874,753 - 1,081,874,753

At 30 June 2020

Assets


profit or loss - APIF - 923,892,103 - 923,892,103


HK$ HK$ HK$ HK$

Allianz Capital Stable Fund At 30 June 2021

Assets



At 30 June 2020

Assets




HK$ HK$ HK$ HK$

Allianz Growth Fund At 30 June 2021

Assets



At 30 June 2020

Assets




185



HK$ HK$ HK$ HK$

Allianz Stable Growth Fund At 30 June 2021

Assets



At 30 June 2020

Assets




HK$ HK$ HK$ HK$

Allianz MPF Conservative Fund At 30 June 2021

Assets



At 30 June 2020

Assets




HK$ HK$ HK$ HK$

Allianz Hong Kong Fund At 30 June 2021

Assets



At 30 June 2020

Assets




186



HK$ HK$ HK$ HK$

Allianz Asian Fund At 30 June 2021

Assets



At 30 June 2020

Assets




HK$ HK$ HK$ HK$

Allianz Flexi Balanced Fund At 30 June 2021

Assets



At 30 June 2020

Assets




HK$ HK$ HK$ HK$

Allianz Greater China Fund At 30 June 2021

Assets



At 30 June 2020

Assets




187



HK$ HK$ HK$ HK$

Allianz Oriental Pacific Fund At 30 June 2021

Assets



At 30 June 2020

Assets




HK$ HK$ HK$ HK$

Allianz RMB Money Market Fund At 30 June 2021

Assets



At 30 June 2020

Assets




HK$ HK$ HK$ HK$

Allianz MPF Age 65 Plus Fund At 30 June 2021

Assets


profit or loss – APIF/ITCIS - 168,715,582 - 168,715,582

At 30 June 2020

Assets




188


(d) Fair value information (continued)


HK$ HK$ HK$ HK$

Allianz MPF Core Accumulation Fund At 30 June 2021

Assets



At 30 June 2020

Assets



Investments whose values are based on quoted market prices in active markets are classified within level 1. The constituent funds do not adjust the quoted price for these instruments. Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within level 2. Investments classified within level 3 have significant unobservable inputs, as they trade infrequently. As of 30 June 2021 and 2020, the constituent funds did not hold any investments classified in level 3. During the years ended 30 June 2021 and 2020, there were no transfers between levels of investments held by the constituent funds. The assets and liabilities of the constituent funds in the Statement of Net Assets excluding financial assets at fair value through profit or loss, are carried at amortised cost and their carrying values are a reasonable approximation of fair value.


189

NOTES TO THE FINANCIAL STATEMENTS 4 Financial risk management (continued) (e) Capital risk management

Each constituent fund’s capital is represented by the net assets attributable to members. Subscription and redemption of units during the year are shown in the Statement of Changes in Net Assets of the respective constituent funds. The amount of net assets attributable to members can change significantly on a daily basis as the constituent funds are subject to daily subscriptions and redemptions at the discretion of members. The constituent funds’ objective when managing capital is to safeguard the constituent funds’ ability to continue as a going concern in order to provide retirement benefits to members and benefits for other stakeholders and to maintain a strong capital base to support the development of the investment activities of the constituent funds.

In order to maintain or adjust the capital structure, the policy of the constituent funds is to perform the following:

• monitor the level of daily subscriptions and redemptions relative to the liquid assets; and

• redeem and issue units of the constituent funds in accordance with the Trust Deed of the Scheme.

The Trustee monitors capital on the basis of the value of net assets attributable to members.

5 Transactions with related parties

The constituent funds had the following transactions with related parties, including the Trustee, the Investment Manager and their associates or delegates during the years ended 30 June 2021 and 2020. All such transactions were entered into in the ordinary course of business and on normal commercial terms. (a) The Trustee of the Scheme during the years is Bank Consortium Trust Company

Limited.

(i) Trustee, custodian and administration fees

The Trustee is entitled, for providing trustee, custodian and administrative services to the Scheme, to receive trustee, custodian and administration fees calculated as a percentage of the NAV of the relevant constituent fund attributable to the relevant class of units. Except for Allianz MPF Age 65 Plus Fund and Allianz MPF Core Accumulation Fund, the percentage is as follows:

Class A and Class B Units - 0.46% p.a.

Class T Units - 0.43% p.a.

For Allianz MPF Age 65 Plus Fund and Allianz MPF Core Accumulation Fund, the percentage is as follows:

Class A, Class B and Class T Units - 0.29% p.a.

This fee is calculated and accrued on each valuation day.

The trustee, custodian and administration fees charged during the years and year end balances are disclosed in note 5(e).


190

NOTES TO THE FINANCIAL STATEMENTS 5 Transactions with related parties (continued)

(a) (ii) Transaction handling fees

The Trustee is entitled to receive transaction handling fees of HK$80 per purchase and sale transaction. No transaction handling fees are charged to Allianz MPF Age 65 Plus Fund and Allianz MPF Core Accumulation Fund.

The transaction handling fees charged during the years and year end balances are disclosed in note 5(e).

(b) The Sponsor and the Investment Manager of the Scheme during the years is Allianz Global Investors Asia Pacific Limited.

(i) Investment management fees

The Investment Manager is entitled to receive a management fee for each constituent fund, except for Allianz MPF Conservative Fund, Allianz RMB Money Market Fund, Allianz MPF Age 65 Plus Fund and Allianz MPF Core Accumulation Fund, of 0.2% per annum for Class A calculated as a percentage of the NAV of the relevant class of the constituent fund. There is nil management fee for Allianz MPF Conservative Fund, Allianz RMB Money Market Fund, and Class B and Class T of other constituent funds.

For Allianz MPF Age 65 Plus Fund and Allianz MPF Core Accumulation Fund, the percentage is 0.39% per annum for all classes.

The investment management fees charged during the years and year end balances are disclosed in note 5(e).

(ii) Sponsor’s fees

The Sponsor is entitled to receive the offer spread on the issue of units in each constituent fund (other than Allianz MPF Conservative Fund and Allianz RMB Money Market Fund) of up to 5% of the NAV of such units and the bid spread on the realisation of units in each constituent fund (other than Allianz MPF Conservative Fund and Allianz RMB Money Market Fund) of up to 2% of the NAV of such units. Currently, the Sponsor does not levy the offer spread or the bid spread where units are issued or realised as a result of a switching instruction or a transfer to or from the Scheme. No Sponsor’s fees have been charged to the constituent funds during the years ended 30 June 2021 and 2020.

(iii) Member services fees

The Sponsor is entitled to receive a member services fee for each constituent fund at a rate of up to 0.2% per annum of the NAV of the relevant constituent fund, except for Allianz MPF Age 65 Plus Fund and Allianz MPF Core Accumulation Fund.

The member services fees charged during the years and year end balances are disclosed in note 5(e).


191


(c) The constituent funds invest in APIFs managed by the Investment Manager. All the balances of investments, amounts receivable on fund switching, amounts receivable on sale of investments, amounts payable on purchase of investments and amounts payable on redemption of units and fund switching presented in the Statement of Net Assets and realised gains/(losses) on sale of financial assets at fair value through profit or loss and derivative financial instruments and change in unrealised gains/losses in value of financial assets at fair value through profit or loss and derivative financial instruments in the Statement of Comprehensive Income related to investments in APIFs managed by the Investment Manager, except for Allianz MPF Age 65 Plus Fund and Allianz MPF Core Accumulation Fund.

The following table shows the balances of investments, amounts receivable on fund switching, amounts receivable on sale of investments, amounts payable on purchase of investments and amounts payable on redemption of units and fund switching presented in the Statement of Net Assets and realised gains/(losses) on sale of financial assets at fair value through profit or loss and derivative financial instruments and change in unrealised gains/losses in value of financial assets at fair value through profit or loss and derivative financial instruments in the Statement of Comprehensive Income relating to investments in APIFs managed by the Investment Manager for Allianz MPF Age 65 Plus Fund and Allianz MPF Core Accumulation Fund:

Allianz MPF Age 65 Plus Fund 2021 2020

HK$ HK$


profit or loss 84,508,147 42,986,990 Amounts receivable on fund switching 1,326,787 3,219,388 Amounts receivable on sale of

investments 2,219,688 2,591,338 Amounts payable on purchase of

investments (906,783) (3,421,059) Amounts payable on redemption of

units and fund switching (2,634,190) (2,392,133) Realised gains/(losses) on sale of

financial assets at fair value through profit or loss and derivative financial instruments 5,691,482 6,518,331

Change in unrealised gains/losses in value of financial assets at fair value through profit or loss and derivative financial instruments 5,257,193 (1,362,716)


192


(c) Allianz MPF Core Accumulation Fund 2021 2020

HK$ HK$


profit or loss 391,936,044 268,035,799 Amounts receivable on fund switching 2,098,768 3,205,921 Amounts receivable on sale of

investments 1,310,118 7,161,521 Amounts payable on purchase of

investments (701,959) (6,291,670) Amounts payable on redemption of

units and fund switching (2,680,418) (4,047,983) Realised gains/(losses) on sale of

financial assets at fair value through profit or loss and derivative financial instruments 27,745,151 13,003,695

Change in unrealised gains/losses in value of financial assets at fair value through profit or loss and derivative financial instruments 64,112,698 2,372,563

(d) For the years ended 30 June 2021 and 2020, the constituent funds did not have any transactions entered into with any of the Trustee’s and Investment Manager’s associates or delegates.

(e) Certain fees/expenses of the Allianz MPF Age 65 Plus Fund and Allianz MPF Core Accumulation Fund were borne by the Investment Manager during the years ended 30 June 2021 and 2020.



5 Transactions with related parties (continued)

(e)

(I) Total trustee, custodian and administration fees during the year

Trustee, custodian and administration fees payable at the year end

(ii) Total transaction handling fees during the year

Transaction handling fees payable at the year end

(iii) Total investment management fees during the year

Investment management fees payable at the yearend

(iv) Total member services fees during the year

Member services fees payable at the year end

Allianz Capital Allianz Stable Allianz MPF Allianz Balanced Fund Stable Fund Allianz Growth Fund Growth Fund Conservative Fund

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$

4,647,650 4,041,899 2,406,846 2,250,276 8,024,767 6,740,582 4,376,092 3,908,481 1,682,616 4,850,474

397,897 336,540 195,494 187,202 700,387 563,094 366,288 327,186 - 410,843

39,280 39,520 39,040 39,440 39,520 39,760 39,440 39,600 39,440 39,680

3,360 3,280 3,280 3,280 3,360 3,360 3,360 3,200 3,280 3,360

61,144 67,924 40,040 45,239 101,559 99,655 55,783 57,582 - -

4,759 5,382 2,829 3,992 8,440 8,594 3,948 5,040 - -

2,083,618 1,811,449 1,078,807 1,008,198 3,596,836 3,020,010 1,960,674 1,750,375 755,491 2,176,292

178,440 150,844 87,683 83,835 314,060 252,243 164,310 146,510 - 184,308

193

LLIANZ GLOBAL INVESTORS MPF PLAN 0R THE YEAR ENDED 30 JUNE 2021

IOTES TO THE FINANCIAL STATEMENTS


(e)






Investment management fees payable at the year end



Allianz Flexi Allianz Greater Allianz Oriental Allianz Hong Kong Fund Allianz Asian Fund Balanced Fund China Fund Pacific Fund

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$

7,262,318 5,952,421 7,026,713 4,954,856 1,643,498 1,625,120 2,211,960 1,406,756 1,129,178 639,333

613,927 496,738 614,081 440,819 136,501 129,782 206,900 127,352 114,149 65,196

39,520 39,840 39,520 39,840 38,880 39,360 39,440 39,760 39,360 39,040

3,360 3,360 3,360 3,360 3,360 3,280 3,360 3,360 3,360 3,360

102,395 96,934 131,353 113,026 42,951 60,712 42,361 36,967 25,776 22,520

8,455 7,827 9,984 10,372 2,799 4,693 3,351 3,335 2,001 2,358

3,248,073 2,661,540 3,149,255 2,218,061 736,300 727,298 987,628 627,514 504,987 285,187

274,814 222,077 275,554 197,331 61,234 58,081 92,495 56,785 51,173 29,087

194




(e)






Investment management fees payable at the year end



Allianz RMB Money Allianz MPF Age 65 Plus Allianz MPF Core Market Fund Fund Accumulation Fund Total 2021 2020 2021 2020 2021 2020 2021 2020 HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$

399,857 322,782 452,734 297,903 1,334,333 930,111 42,598,562 37,920,994

38,258 26,715 40,422 28,864 123,066 89,854 3,547,370 3,230,185

37,680 37,200 - - - - 431,120 433,040

3,120 3,040 - - - - 36,560 36,240

- - 576,194 398,008 1,734,838 1,245,740 2,914,394 2,244,307

- - 51,621 36,459 160,190 116,694 258,377 204,746

178,341 144,143 - - - - 18,280,010 16,430,067

17,053 11,924 - - - - 1,516,816 1,393,025

195


196

NOTES TO THE FINANCIAL STATEMENTS 6 Contributions received and receivable

Mandatory contributions for both the employers and members are equal to 5% of the employees’ relevant income up to HK$30,000 per month but in respect of members earning less than HK$7,100 per month, the members’ mandatory contribution is nil.

Self-employed persons must contribute 5% of their relevant income subject to a maximum contribution of HK$1,500 per month to the Scheme unless their relevant income is less than HK$7,100 per month.

Any contributions made to the Scheme by the employers or members in excess of their mandatory contributions are additional voluntary contributions. The Scheme offers also tax deductible voluntary contributions to eligible members.

7 Benefits paid and payable

Members will become entitled to benefits in respect of mandatory contributions and tax deductible voluntary contributions to the Scheme in the circumstances set out in the Ordinance. Currently, these circumstances include where the members (i) reach the age of 65; (ii) permanently cease employment after reaching the age of 60; (iii) become totally incapacitated; (iv) permanently depart from Hong Kong; (v) die; (vi) terminal illness or (vii) have the right to claim a small balance pursuant to the Ordinance.

Members will become entitled to benefits in respect of non-tax deductible voluntary contributions to the Scheme in circumstances set out in the Trust Deed and the relevant participation agreement.

8 Financial assets at fair value through profit or loss 2021 2020 HK$ HK$

The Scheme Investments in constituent funds

Allianz Balanced Fund 1,081,432,681 923,441,237 Allianz Capital Stable Fund 529,894,500 514,007,044 Allianz Growth Fund 1,906,026,487 1,547,388,872 Allianz Stable Growth Fund 994,176,171 897,872,341 Allianz MPF Conservative Fund 1,007,913,796 1,127,688,716 Allianz Hong Kong Fund 1,677,696,389 1,371,606,028 Allianz Asian Fund 1,680,374,456 1,227,855,212 Allianz Flexi Balanced Fund 370,460,511 354,781,427 Allianz Greater China Fund 571,718,392 353,627,521 Allianz Oriental Pacific Fund 314,537,449 184,259,877 Allianz RMB Money Market Fund 100,779,411 72,677,539 Allianz MPF Age 65 Plus Fund 168,760,156 125,157,666 Allianz MPF Core Accumulation Fund 517,541,411 382,003,179

Total financial assets at fair value through

profit or loss 10,921,311,810

9,082,366,659


197

NOTES TO THE FINANCIAL STATEMENTS 8 Financial assets at fair value through profit or loss (continued)

2021 2020 HK$ HK$

Constituent Funds Allianz Balanced Fund Approved pooled investment fund 1,081,874,753 923,892,103



923,892,103

Allianz Capital Stable Fund Approved pooled investment fund 529,902,980 514,228,096


profit or loss 529,902,980

514,228,096

Allianz Growth Fund Approved pooled investment fund 1,906,686,594 1,548,235,453



1,548,235,453

Allianz Stable Growth Fund Approved pooled investment fund 994,387,538 898,340,627



898,340,627

Allianz MPF Conservative Fund Approved pooled investment fund 1,007,628,939 1,128,116,460



1,128,116,460


198

NOTES TO THE FINANCIAL STATEMENTS 8 Financial assets at fair value through profit or loss (continued) 2021 2020 HK$ HK$

Constituent Funds (continued) Allianz Hong Kong Fund Approved pooled investment fund 1,678,328,236 1,372,304,579



1,372,304,579

Allianz Asian Fund Approved pooled investment fund 1,681,108,553 1,228,549,936



1,228,549,936

Allianz Flexi Balanced Fund Approved pooled investment fund 370,429,586 354,835,627



354,835,627

Allianz Greater China Fund Approved pooled investment fund 571,986,905 353,802,404



353,802,404

Allianz Oriental Pacific Fund Approved pooled investment fund 314,627,190 184,334,102



184,334,102


199

NOTES TO THE FINANCIAL STATEMENTS 8 Financial assets at fair value through profit or loss (continued) 2021 2020 HK$ HK$

Constituent Funds (continued) Allianz RMB Money Market Fund Approved pooled investment funds 100,775,814 72,708,494



72,708,494

Allianz MPF Age 65 Plus Fund Approved pooled investment funds/ Index-tracking collective investment scheme 168,715,582

125,091,857



125,091,857

Allianz MPF Core Accumulation Fund Approved pooled investment funds/ Index-tracking collective investment scheme 517,857,747

381,681,422



381,681,422

9 Bank loans, overdrafts and other borrowings

The Scheme and its constituent funds had no bank loans, overdrafts and other borrowings as at 30 June 2021 and 2020.

10 Accrued benefits

The total accrued benefits vested in the members’ accounts amounted to HK$10,830,235,518 as at 30 June 2021 (2020: HK$8,989,445,759).

11 Auditor's remuneration

The auditor's remuneration is allocated by the Investment Manager and Trustee to each constituent fund based on the net asset value of each individual constituent fund and accrued on a daily basis.


200


12 Taxation The Scheme is registered under the Ordinance and is therefore a recognised scheme for

purposes of the Hong Kong Profits Tax. The policy of the Hong Kong Inland Revenue Department (“IRD”), as set out in the IRD Practice Note No. 23, is that the “recognised retirement schemes and their trustees are not considered to be subject to profits tax on their investment income”. Accordingly, no provision for Hong Kong Profits Tax has been made in the Scheme’s financial statements.

13 Payments charged to or imposed on DIS constituent funds or scheme members

who invest in the constituent funds

In accordance with the Mandatory Provident Fund legislation, the aggregate of the payments for services of the Core Accumulation Fund and Age 65 Plus Fund must not, in a single day, exceed a daily rate of 0.75% per annum of the net asset value of each of the Core Accumulation Fund and Age 65 Plus Fund divided by the number of days in the year. The above aggregate payments for services include, but are not limited to, the fees paid or payable for the services provided by the Trustee, the Administrator, the Investment Manager, the Custodian and the Sponsor and/or promoter (if any) of each of the Core Accumulation Fund and Age 65 Plus Fund and its underlying investment fund(s), and any of the delegates from these parties and such fees are calculated as a percentage of the net asset value of each of the Core Accumulation Fund and Age 65 Plus Fund and its underlying investment fund(s), but do not include any out-of-pocket expenses incurred by each of the Core Accumulation Fund and Age 65 Plus Fund and their underlying investment fund(s). In accordance with the Mandatory Provident Fund legislation, the total amount of all payments that are charged to or imposed on a DIS constituent fund or members who invest in a DIS constituent fund, for out-of-pocket expenses incurred by the Trustee on a recurrent basis in the discharge of the Trustee's duties to provide services in relation to a DIS constituent fund, shall not in a single year exceed 0.2% per annum of the net asset value (the sum of net asset value of the relevant DIS constituent fund as at the last dealing day of each month of the relevant year divided by the number of months) of each of the Core Accumulation Fund and Age 65 Plus Fund. For this purpose, out-of-pocket expenses include, for example, annual audit expenses, printing or postage expenses relating to recurrent activities (such as issuing annual benefit statements), recurrent legal and professional expenses, safe custody charges which are customarily not calculated as a percentage of the net asset value and transaction costs incurred by a DIS constituent fund in connection with recurrent acquisition of investments for the DIS constituent fund (including, for example, costs incurred in acquiring underlying funds) and annual statutory expenses (such as compensation fund levy where relevant) of the DIS constituent fund. Out-of-pocket expenses that are not incurred on a recurrent basis may still be charged to or imposed on a DIS constituent fund or members who invest in a DIS constituent fund and such out-of-pocket expenses are not subject to the above statutory limit. Payment for services, out-of-pocket expenses and other payment charged to the Core Accumulation Fund and Age 65 Plus Fund are disclosed below. Payments for services and out-of-pocket expenses are those defined in the MPF Ordinance.


201


13 Payments charged to or imposed on DIS constituent funds or scheme members who invest in the constituent funds (continued) For the year ended 30 June 2021

Allianz MPF Core

Accumulation Fund


Fund HK$ HK$ Payments for services

- Trustee, custodian and administration fees 1,334,333 452,734 - Investment management fees 1,734,838 576,194

Total payments for services 3,069,171 1,028,928

Out-of-pocket expenses

- Safe custody and bank charges 1,086 758 - Printing and postage expenses 53,025 17,993 - Auditor’s remuneration 25,672 8,707 - Insurance premium 3,678 1,250 - Other expenses 4,834 4,611

Total out-of-pocket expenses 88,295 33,319

Other payments

- Formation cost 54,856 54,995 - Legal and professional fee 22,207 7,548

Total other payments 77,063 62,543

Total payments 3,234,529 1,124,790

Out-of-pocket expenses expressed as a

percentage of average net asset value as at the last dealing day of each month of the DIS constituent funds 0.02% 0.02%


202


13 Payments charged to or imposed on DIS constituent funds or scheme members who invest in the constituent funds (continued) For the year ended 30 June 2020

Allianz MPF Core

Accumulation Fund


Fund HK$ HK$ Payments for services

- Trustee, custodian and administration fees 930,111 297,903 - Investment management fees 1,245,740 398,008

Total payments for services 2,175,851 695,911

Out-of-pocket expenses

- Safe custody and bank charges 1,468 932 - Printing and postage expenses 67,736 21,832 - Auditor’s remuneration 19,261 6,325 - Insurance premium 2,496 800 - Other expenses 5,009 4,814

Total out-of-pocket expenses 95,970 34,703

Other payments

- Formation cost 55,006 55,146 - Legal and professional fee 17,715 5,340

Total other payments 72,721 60,486

Total payments 2,344,542 791,100

Out-of-pocket expenses expressed as a

percentage of average net asset value as at the last dealing day of each month of the DIS constituent funds 0.03% 0.04%

14 Soft commission arrangements

For the years ended 30 June 2021 and 2020, the Investment Manager and its associates did not enter into any soft commission sharing arrangements with brokers in relation to dealings in the assets of the Scheme and its constituent funds.


203


15 Security lending arrangements

During the years ended 30 June 2021 and 2020, the Scheme and its constituent funds did not enter into any security lending arrangements.

16 Negotiability of assets

As at 30 June 2021 and 2020, there was no statutory or contractual requirement restricting the negotiability of the assets of the Scheme and its constituent funds.

17 Commitments

The Scheme and its constituent funds had no commitments as at 30 June 2021 and 2020.

18 Contingent liabilities

The Scheme and its constituent funds had no contingent liabilities as at 30 June 2021 and 2020.

19 Marketing expenses

There have been no advertising expenses, promotional expenses or commissions or brokerage fees paid and payable to the MPF intermediaries deducted from the Scheme or its constituent funds during the years ended 30 June 2021 and 2020.

20 Deferred expenses

In accordance with section 37 of the General Regulation, administrative expenses for Allianz MPF Conservative Fund which have not been deducted in the respective months may be deducted in the following twelve months. As at 30 June 2021, the deferred administrative expenses amounted to HK$4,510,407 (2020: nil) were not recognised in the Statement of Comprehensive Income of the constituent fund which included trustee, custodian and administration fees, printing and postage expenses, auditor’s remuneration, insurance premium, member services fees, legal and professional fee and other expenses.

21 Subsequent events

With effect from 9 August 2021: (i) Manulife (International) Limited has replaced Allianz Global Investors Asia Pacific

Limited as the Sponsor of the Scheme. (ii) As a result of the change in sponsorship, the name of the Scheme was changed

from “Allianz Global Investors MPF Plan” to “Manulife RetireChoice (MPF) Scheme”, while the names of the constituent funds remained unchanged.

22 Approval of financial statements

The financial statements were approved by the Trustee on 14 December 2021.

ALLIANZ GLOBAL INVESTORS MPF PLAN

INDEPENDENT AUDITOR'S ASSURANCE REPORT

FOR THE YEAR ENDED

30JUNE2021

INDEPENDENT AUDITOR'S ASSURANCE REPORT TO THE TRUSTEE OF ALLIANZ GLOBAL INVESTORS MPF PLAN

We have audited the financial statements of Allianz Global Investors MPF Plan and each of its constituent funds (hereafter referred to as the "Scheme") for the year ended 30 June 2021 in accordance with Hong Kong Standards on Auditing and with reference to Practice Note 860.1 (Revised) "The Audit of Retirement Schemes" issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"), and have issued an unqualified auditor's report thereon dated 14 December 2021.

Pursuant to section 102 of the Hong Kong Mandatory Provident Fund Schemes (General) Regulation (the "General Regulation"), we are required to report whether the Scheme complied with certain requirements of the Hong Kong Mandatory Provident Fund Schemes Ordinance (the "Ordinance") and the General Regulation.

Trustee's Responsibility

The General Regulation requires the Trustee to ensure that:

(a) proper accounting and other records are kept in respect of the constituent funds of the Scheme, the Scheme assets and all financial transactions entered into in relation to the Scheme;

(b) the requirements specified in the guidelines made by the Mandatory Provident Fund Schemes Authority (the "MPFA") under section 28 of the Ordinance with respect to forbidden investment practices and the requirements of sections 37(2), 51 and 52 and Part X of, and Schedule 1 to, the General Regulation are complied with;

(c) the requirements under sections 34DB(1)(a), (b), (c) and (d), 34DC(1) and 34DD(1) and (4) of the Ordinance are complied with; and

(d) the Scheme assets are not subject to any encumbrance, otherwise than as permitted by the General Regulation.

Our Independence and Quality Control

We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the HKICPA, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.

Our firm applies Hong Kong Standard on Quality Control 1 issued by the HKICPA and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

INDEPENDENT AUDITOR'S ASSURANCE REPORT TO THE TRUSTEE OF ALLIANZ GLOBAL INVESTORS MPF PLAN (Continued)

Auditor's Responsibility

Our responsibility is to report solely to the Trustee, in accordance with section 102 of the General Regulation, on the Scheme's compliance with the above requirements based on the results of the procedures performed by us, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

We conducted our engagement in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised), "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information" and with reference to Practice Note 860.1, (Revised) "The Audit of Retirement Schemes" issued by the HKICPA. We have planned and performed our work to obtain reasonable assurance on whether the Scheme has complied with the above requirements.

We have planned and performed such procedures as we considered necessary with reference to the procedures recommended in Practice Note 860.1 (Revised), which included reviewing, on a test basis, evidence obtained from the Trustee regarding the Scheme's compliance with the above requirements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

Based on the foregoing:

(a) in our opinion:

(i) proper accounting and other records have been kept during the year ended 30 June 2021 in respect of the constituent funds of the Scheme, the Scheme assets and all financial transactions entered into in relation to the Scheme; and

(ii) the requirements specified in the guidelines made by the MPFA under section 28 of the Ordinance with respect to forbidden investment practices and the requirements of sections 37(2), 51 and 52 and Part X of, and Schedule 1 to, the General Regulation have been complied with, in all material respects, as at 30 June 2021, 26 February 2021 and 31 August 2020; and

(iii) the requirements specified in the Ordinance under sections 34DB(1)(a), (b), (c) and (d), 34DC(1) and 34DD(1) and (4)(a) with respect to the investment of accrued benefits and control of payment for services relating to Allianz MPF Core Accumulation Fund and Allianz MPF Age 65 Plus Fund have been complied with, in all material respects, as at 30 June 2021, 26 February 2021 and 31 August 2020; and

INDEPENDENT AUDITOR'S ASSURANCE REPORT TO THE TRUSTEE OF ALLIANZ GLOBAL INVESTORS MPF PLAN (Continued)

Opinion (Continued)

(iv) the requirements specified in section 34DD(4)(b) of the Ordinance with respect to the controls of out-of-pocket expenses of the Allianz MPF Core Accumulation Fund and Allianz MPF Age 65 Plus Fund have been complied with, in all material respects, as at 30 June 2021.

(b) as at 30 June 2021, the Scheme assets were not subject to any encumbrance, otherwise than as permitted by the General Regulation.

Other Matter

The requirements specified in the Ordinance under sections 34DI(1) and (2) and 34DK(2) with respect to the transfer of accrued benefits to an account and specified notice, and 34DJ(2), (3), (4) and (5) with respect to locating scheme members relating to Allianz MPF Core Accumulation Fund and Allianz MPF Age 65 Plus Fund are not applicable to the Trustee during the year ended 30 June 2021 as the Trustee has completed the relevant transitional provisions and the default investment arrangement of the Scheme prior to 1 April 2017 was not a guaranteed fund. Accordingly, there is no reporting on these sections.

Intended Users and Purpose

This report is intended solely for submission by the Trustee to the MPF A pursuant to section 102 of the General Regulation, and is not intended to be, and should not be, used by anyone for any other purpose.

9~~~~ PricewaterhouseCoopers Certified Public Accountants

Hong Kong, 14 December 2021

with effect from aug 9, 2021, manulife has become the

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